Thanks for chiming in @lucasgladding!
The package dependency is actually the code that we are working on. We want the integration point to be simple within the apps that uses our package. It's true that moving the sheet up in the view layout does correct the behavior but that complicates the app side integration.
Since it seems to be new behavior, and currently only reproducible on certain simulators, it feels like a bug. A feedback request (FB21697975) was submitted through Feedback Assistant to Apple. In our use case, the alert is a sign out confirmation alert, so having it auto dismiss creates a bad user experience and would be problematic if it started happening on devices
Topic:
UI Frameworks
SubTopic:
SwiftUI