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I am happy to share that we have fixed this bug in our latest release – 24.3.0 which is available worldwide now.
Going forward, our goal is to fix as many top User-Voice bugs as possible and as frequently as possible. Given the nature of the fixes, some of the bugs will take a longer time to fix, but we are on it.
You can update to the latest release using Creative Cloud desktop App: https://helpx.adobe.com/in/creative-cloud/help/creative-cloud-updates.html
Thank you for all the feedback. Keep it coming!
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Go to preferences > General > tick the box "Use legacy "File New" interface
This should work