There is a specific environment variable to detect StandBy mode called isActivityFullscreen.
@Environment(\.isActivityFullscreen) var isStandByMode
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I was pulling my hair over this, but I finally found a solution for my case. By setting ".textContentType(.username)" on the email field, iOS stopped trying to create a strong password. Very obscure behaviour... Hope it helps you!
I've also stumbled upon this. Trying to create a sign in form and iOS keeps suggesting a new strong password 🤦🏻♂️