I just ran into this today. Xcode 12.3, 14.3 and 14.4 both do this. My device with iOS 12 doesn't have any issues.
Bit Shape
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So it looks like if UINavigationController.view.frame has an origin of y<notch, it will automatically adjust the UINavigationBar size. Even if it's a child of another view, so it's not at the top of the screen, it still does this.Again, is there some sort of check? What am I looking for?
I've also tried checking the UINavigationBar directly to see what's up. When it appears, its safeAreaInsets are (top = 0, left = 0, bottom = 0, right = 0). The UINavigationController additionalSafeAreaInsets are also (top = 0, left = 0, bottom = 0, right = 0).