I ran into this same thing as well and managed to fix it by putting this code in the view controller:
override func viewDidLayoutSubviews() {
super.viewDidLayoutSubviews()
navigationController?.navigationBar.prefersLargeTitles = true
}
batting1k
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Same issue on beta 4. Not sure what I'm missing but can't seem to get this to work, pretty frustrating. I saw someone on Twitter say upgrading to macOS 13 beta fixed it for them, but that's not something I want to do on my personal machine right now.