I can confirm that didn't scroll with 13.X, and after upgrade to Sequoia 15.1.1 it just started scrolling.
Kinda looked like the Macbook pro was not recognizing the Magic part of the mouse, with the gesture options completely missing form the mouse menu. I tried everything, forgetting, disconnecting, rebooting, shutting down, charging, connecting with cable, but this is obviously a backward compatibility issue that has not been resolved.
For what it's worth this update did not mess up any of my conda settings and environments so it was a pretty smooth update. Agree that it's ridiculous to have to update an OS for a mouse to work. Be better Apple.
I did notice that my older Magic mouse, that did scroll has an older firmware on it so this could be the an issue with the firmware shipped with a new mouse.