I am having the same issue. I am surprised this hasn't reared its head with more devices.

@Vision Pro Engineer I just ran into this today. A app I am developing was having the issue with entities being "stuck". Where they would scale or rotate but not translate. I started looking through the device logs via XCode. Lots of errors in the RealityWidget process. I have a photos widget on my wall. Wouldn't think it would have any bearing on a whole other process. But I also have seen widgets be a bit buggy too in the past. Deleted the widget on my wall. EVERYTHING WORKS. Add the widget back. Entities are stuck. Hope that helps track it down.