The .presentationBackgroundInteraction modifier does provide the functionality I was looking for, although unlike the documentation example.
.presentationDetents([.height(120), .medium, .large])
.presentationBackgroundInteraction(.enabled(upThrough: .height(120)))
I found this worked for my scenario:
presentationBackgroundInteraction(.enabled)
Thanks for following up!
dougholland
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Thanks for following up although I'm hoping there is a way to do this without needing to use a third-party implementation.