The only workaround I’ve found is to use a text-only menu button label. That lets the tip display correctly on iOS 26 (see below).
This release has (or had) quite a few toolbar-related bugs and most seem related to icon-only buttons. Along with this issue, here are three others I've reported: issue 1, issue 2, and issue 3.
In my app, I've left the icon-only button hoping it gets fixed soon. The actual tip I display is not critical, and a text-only label just looks "off"—especially since Apple officially designates the ellipsis symbol as the standard for More (Apple Design link).
Workaround
Starting with the code in the first post, just change the Label() in the ToolbarItem to Text() like this:
ToolbarItem(placement: .topBarTrailing) {
Menu {
Button("Dismiss", role: .cancel) { }
Button("Do Nothing") { }
} label: {
Text("More")
}
.popoverTip(tip)
}
Screenshot
Description: iPhone simulator running iOS 26.1 showing a popover labeled Menu Tip. The popover beak is pointing to a toolbar button labeled More.