FIFinderSync not working in iCloud Drive on Sonoma

When setting up a Finder Sync Extension, even when just using the minimal template given by the File → New → Target → macOS ones provided in Xcode, the right-click menu does not show up within iCloud Drive, while toolbar buttons always work.

Outside iCloud Drive multiple extensions show up when right-clicking on Finder's background.

When right-clicking inside iCloud Drive (here my synced Desktop folder), they do not show up.

Before macOS Sonoma this worked perfectly for me, but it broke beginning with the first beta. No Finder extension from any app (such as the Keka one) work anymore. I have seen it discussed that not more than one Finder extension can be active in a directory, but that is not true as can be seen in the first screenshot.

Q: How can I circumvent this issue?

Replies

same here. It is very disappointing.