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

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

Start with the package.json versions and the supplied PeoplePicker configuration, then reproduce the missing suggestions under SPFx 1.22.2 with @pnp/spfx-controls-react 3.23.0. Compare the behavior with version 3.13.0 and trace the PeoplePicker search path. Done means matching-name suggestions appear again with the newer version.