iPadOS26 has changed Apple TV app functionality
Prior to iPadOS26, when using the Apple TV app on the iPad and watching a movie full screen - if you were to swipe up the movie would minimize to smaller box revealing the Home Screen and the movie would keep playing.
Now, since the upgrade, if a movie is playing full screen and you swipe up, the movie stops playing and disappears.
It is interesting to note that this behavior has not been changed on the iPhone running iOS26 as if you have the movie playing full screen there and swipe up it does indeed minimize and keep playing.
Filed a feedback report.
MtD