Item filter / Loot not showing unless explicitly holding down left control

This is one of the items that really bugs me (pun intended), but nowadays any loot items drop to the ground, regardless of whether or not filter is used, they are hidden unless you hold down on the left joystick of the PS5 controller or are right next to item. Did they remove the default setting of displaying all loot that meets filter criteria or am I missing something ? This is a huge QoL loss imo from v0.1 and should be addressed asap for consoles.

Hi Adam, looks like this is now resolved after I have turned Label visibility both on and off. It was off previously, but it wasn't doing the intended trick. Thanks