Very bad Split View bug in Tahoe - one app stuck in zoomed out view

Split view keeps failing for me on my Ultra Wide Monitor. This has only been happening for me since the upgrade to Tahoe.

When I add a second app to the space, the app on the left appears zoomed out on the left of the window as if it was in Stage Manager. But it's possibly to interact with the window (e.g. select text in it even thought it's too small to see exactly what you're selecting, or scroll up and down).

If I go to Mission Control or in and out of the space sometimes it reappears but most often I just need to restore it to the desktop and try again.

It happens randomly, the window can be fine and then appear like this, and then resolve itself again. But once it's like this (which is happening a lot), then it's usually stuck until I remove it from the split.

It's very frustrating - I use this split view all the time on my large monitor. I've never had this problem before.

The only modifications I've made to my spaces settings are turning off "Automatically rearrange Spaces based on most recent use" and I also have Stage Manager turned on.

[Edited by Moderator]