Same issue with the background script loading only once or twice on iOS 17.5 beta(1,2,3), it works reliably on iOS 17.4.1.
In my app, which uses only a background script (no content script), I have to force quit Safari and relaunch it to make it work again. I also tried create new Safari extension where I added a webNavigation.onBeforeNavigate listener to the background script. However, this listener triggers only once or twice and requires tapping extension popup to get it working again briefly
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same here, fixed by going to Xcode -Settings - Accounts and log out my dev account and log it in again