Thank you for the information. We have raised an Apple Feedback #FB22919544 with more details on our network extension implementation and the exact steps to reproduce this. Please let us know if this is useful or if there is any other steps we should take to expedite this investigation.

This issue is no longer observed in macOS Sonoma 14.2 Beta 3 (23C5047e).

Some additional info: we have tested the same code on both Intel and M1 machine and the issue is only observed on the M1 machine. Would there be any reason that different architectures made a difference?