This bug has been haunting me since iOS 26 came out and there is little to no discussion anywhere. Thanks for posting this and I hope Apple really is aware and will resolve this quickly as the extension is a crucial feature of the app I'm developing. I filed a bug report via Feedback Assistant back in Feb but haven't heard anything. I kindly ask everyone who is affected by this issue to also file a report (if you haven't done so yet) in the hopes that Apple would pay more attention.

Thanks for the response. I've searched through the docs during development including the one you shared, there is no mention regarding whether the App Clip card can be skipped during invocation when the App Clip or main app is already installed. Can you confirm if this is possible?