[SPFx 1.22.1] PeoplePicker 3.23.0 Doesn't bring back any search results

[thehorseofcourse]

Category

[ ] Enhancement

[X ] Bug

[ ] Question

Version

Please specify what version of the library you are using: [3.23.0]

Observed Behavior

I have recently upgraded my SPFx to 1.22.2 from 1.22.0 and the version of this library from 3.13.0 to the latest version 3.23.0.
When typing in a name no suggested people appear even when you type in a name where multiple instances should appear.

Reverting back to v3.13.0 fixes the issue and the people appear again.

Steps to Reproduce

package.json

{
  "name": "home-office-org-directory",
  "version": "1.2.1",
  "private": true,
  "engines": {
    "node": ">=22.0.0 <23.0.0"
  },
  "main": "lib/index.js",
  "scripts": {
    "test-only": "heft run --only test --",
    "deploy": "heft dev-deploy",
    "start": "heft start --clean",
    "build-watch": "heft build --lite",
    "package-solution": "heft package-solution",
    "deploy-azure-storage": "heft deploy-azure-storage",
    "eject-webpack": "heft eject-webpack",
    "trust-dev-cert": "heft trust-dev-cert",
    "untrust-dev-cert": "heft untrust-dev-cert"
  },
  "dependencies": {
    "@fluentui/react": "8.106.4",
    "@fluentui/react-components": "^9.68.2",
    "@fluentui/react-icons": "^2.0.316",
    "@fluentui/react-tabster": "^9.26.11",
    "@fluentui/react-utilities": "^9.26.0",
    "@microsoft/mgt-spfx": "3.1.3",
    "@microsoft/sp-component-base": "1.22.2",
    "@microsoft/sp-core-library": "1.22.2",
    "@microsoft/sp-lodash-subset": "1.22.2",
    "@microsoft/sp-office-ui-fabric-core": "1.22.2",
    "@microsoft/sp-property-pane": "1.22.2",
    "@microsoft/sp-webpart-base": "1.22.2",
    "@pnp/graph": "^4.17.0",
    "@pnp/sp": "^4.12.0",
    "@pnp/spfx-controls-react": "^3.23.0",
    "@pnp/spfx-property-controls": "^3.22.0",
    "interweave": "^13.1.1",
    "is-url": "^1.2.4",
    "playwright-m365-helpers": "^0.0.6",
    "react": "17.0.1",
    "react-dom": "17.0.1",
    "tslib": "2.3.1",
    "zod": "^4.3.6"
  },
  "devDependencies": {
    "@microsoft/eslint-config-spfx": "1.22.2",
    "@microsoft/eslint-plugin-spfx": "1.22.2",
    "@microsoft/sp-module-interfaces": "1.22.2",
    "@microsoft/spfx-heft-plugins": "1.22.2",
    "@microsoft/spfx-web-build-rig": "1.22.2",
    "@playwright/test": "^1.55.1",
    "@rushstack/eslint-config": "4.5.2",
    "@rushstack/heft": "1.1.2",
    "@types/heft-jest": "1.0.2",
    "@types/is-url": "^1.2.32",
    "@types/node": "^24.6.1",
    "@types/react": "17.0.45",
    "@types/react-dom": "17.0.17",
    "@types/webpack-env": "~1.15.2",
    "@typescript-eslint/parser": "8.46.2",
    "baseline-browser-mapping": "^2.8.28",
    "dotenv": "^17.2.3",
    "eslint": "8.57.0",
    "eslint-plugin-react-hooks": "4.3.0",
    "typescript": "~5.8.0"
  }
}

<PeoplePicker
              /* eslint-disable-next-line @typescript-eslint/no-explicit-any */
                context={context as any}
                personSelectionLimit={100000}
                suggestionsLimit={10}
                showtooltip={true}
                disabled={false}
                required={false}
                principalTypes={[PrincipalType.User]}
                resolveDelay={1000}
                onChange={(people) => getPeoplePickerItems("membership", people)}
                defaultSelectedUsers={(formData.membership) || []} />

Not sure if I am doing something wrong and have a mismatch in my modules stopping it or if its an actual bug,
Thanks in advance

[github-actions]

Thank you for submitting your first issue to this project.