I had the same issue.
The Menu would not respond the first time after the sheet is dismissed, but would respond when I click on it the second time.
The Menu would open the first time only if the sheet was dismissed by dragging down.
Fix that worked for me:
Adding @Environment(\.dismiss) private var dismiss to the parent view along with the .id(UUID()) on the Menu (as suggested by @JPHC) made the Menu respond on every click