Interesting. Try doing a few sleep resume cycles to make sure Defender does not wake up and bite you in the back side.
Thanks for the update.
Tried that and restarting a few times, still says 'Normal'. Usually it would switch to 'Defender' about 3-4 minutes after waking/booting and if it didn't then it usually would after a while. but so far it hasn't.
It's worth mentioning that this is a clean install so there's a chance that it was fixed on earlier builds but I didn't bother checking because I set up TS way back when it was discovered.
Another interesting thing is that VBS is now enabled by default when clean installing 22H2 which wasn't the case with 21H2 (when using Rufus), so I'll test how it goes with VBS off.
Edit: Same thing with VBS off so it probably has no effect on it, but yeah I'd say it's finally fixed.