It looks like my keyboard was messed up. After a "Soft Reset" it is working as expected now.

I hit something similar today. I noticed that my external keyboard emits 4 keyDown events for the esc key. That does not happen for the MacBook keyboard, it correctly emits a single esc key down event. Are you hitting issues with an external keyboard as well?

Check here for a workaround https://stackoverflow.com/questions/75166625/have-a-fullsizecontentview-nswindow-taking-the-size-of-a-swiftui-view

This is how it looks.