"All at Once" Desktop & Dock Setting in System Settings Not Working

I'm on a 24-inch iMac 2021 running Sonoma 14.7. My issue is that application windows can't be viewed all at once on my desktop even though I have "All at Once" selected in System Settings > Desktop & Dock. I also have "On Desktop" selected under "Desktop & Stage Manager". I spoke with Apple today and the rep said the only way to fix this is to update to Sequoia, but I'm not quite ready to since it's such a new release.

It's a minor annoyance in the overall scheme. Just wondering if what the rep told me is correct. I've owned Macs forever, and never had it where the OS that just came out be the fix to an issue. Thanks in advance for any wisdom.