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Thanks for the information provided to the Illustrator team.
We are able to reproduce this issue at our end and the engineering team is currently isolating this issue further to get to the root cause.
With Best Regards,
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I found a workaround in Photoshop. Go to the Photoshop/Preferences/General. Click on "Enable Flick Panning". Just toggle that on and off. Fixed the problem for me.