iOS 17.5 is now live and the bug seems to fixed.
ugi
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This is still an issue with the iOS 17.4 RC. In addition to that, one funny thing is that once one gets a default denied status after initially calling requestTrackingAuthorizationWithCompletionHandler: method, the actual value of the authorization status is still zero (not determined). Try running this code and check the values of the callbackStatus and status:
[ATTrackingManager requestTrackingAuthorizationWithCompletionHandler:^(ATTrackingManagerAuthorizationStatus callbackStatus) {
ATTrackingManagerAuthorizationStatus status = [ATTrackingManager trackingAuthorizationStatus];
}];