This issue appears to have been fixed in iOS 26.

I was able to work around this by adding 5 pts of padding to the widget body, only when the .widgetRenderingMode is tinted and the timeline provider widget context .isPreview. This still seems to me like either a bug or a very strange design decision by Apple to show the widget differently in the gallery than it will appear on the home screen.

Still seeing this in Xcode 14 beta 6! When I long press on the lock screen in a simulator, it flashes black for a second and nothing else happens. How am I supposed to test out lock screen widgets if the Simulator lock screen is completely broken? I've tried "Erase all content and settings" and that does not help. Has anyone found a workaround other than installing the beta on a physical device?