File extensions can't be hidden in MacOS Ventura 13.3.1

In the universal settings in Finder, although 'show file extensions' option is unchecked, it still shows the files with file extensions in all the folders like Desktop, Documents, Documents etc. This appears to be a bug in the latest MacOS. Reported the issue to Apple Support and finally they asked me to wait till next update release. However, the Apple Support could not assured me whether the issue would be addressed in the next release definitely or not. Are you also facing the same issue on your Mac with Ventura 13.3.1?