In case anyone stumbles across this thread in the future, I received feedback from Apple in my bug report in feedback assistat and am happy to report this bug is no longer an issue in iOS 17.4.1. 🎊

Seems my issue could be the same thing that's causing this issue, as I would assume that sheets in SwiftUI are just SheetViewController under the hood in UIKit. Crossposting a similar bug that appears on SwiftUI on the latest version of iOS too 16.4. https://developer.apple.com/forums/thread/729197.