People Awareness is not working

I have VisionOS 2.3.1

Model: MQLA3LL/A

I use my AVP with my MacBook Air M2 and Virtual Display. I cannot get People Awareness to work. The AVP does not recognize people looking directly at me and I cannot see them through my Virtual Display. I have tried it with no apps and just the Environments and it does not work. I have also tried using the native AVP apps and people still do not show through which makes it difficult to use in a work environment.

While People Awareness is not an essential feature for me, it does have practical applications that are both convenient and important when using the AVP around other people.

For now, I have to either move my entire Virtual display out of the way and turn off Environments, or completely remove my AVP to address people who wish to converse with me.