Interestingly, the exact opposite (switching that to off from having it on before the update) seems to fix my issues for now. Can scroll again.
Although when I scroll to the widgets view on the side, then the home screen doesn't dismiss and I have a messy overlay of the widgets page and any home screen page I scroll to, haha.
13 mini here
newts
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What continues to work for me in macOS Ventura 13.5 (but also including Sonoma Dev. Beta 1 last time I tried) is this:
Apple TB3 (USB C) <-> TB1/2 adapter
+
Apple TB1/2 <-> GbE adapter
It's pretty expensive if you don't have either, but it does seem to work quite well.
It uses the same chipset as in the older Thunderbolt (non-USB-C) display, which also seems to work.
(You may even be able to find some used hardware)
I started a new thread but it hasn't been approved yet - I'll link it soon.