Opening PDFs in the same window using Preview not working with Monterey?

On Big Sur, I had no issues opening multiple PDFs in tabs under the same Preview window. However, ever since I upgraded to Monterey, Preview seems to be opening separate windows for each PDF I open. Is anyone else experiencing this problem and found a fix for it yet? I have checked Settings > General and my "Prefer tabs" says "always", just as it did when I was on Big Sur, so I assume it is a bug in Monterey.

I also know that I can "forcefully" merge all windows when I am actually in Preview, but I am talking about having this automatically done when I open multiple PDFs, which was possible until Big Sur.

P.S. Not sure whether this is relevant, but I am using an M1 iMac.

Preview on macOS Monterey is virtually broken in terms of saving and respecting user preferences, so I can state that I am able to reproduce this bug even on an Intel iMac, so this is not a question of CPU. It does not respect the zoom to fit preference either and now I have also to activate that viewing preference every time I open a PDF document. Please file a bug through Feedback Assistant. I will too, because the more feedback they get this bug will get a higher priority to be fixed.