has this issue not been fixed yet?!
This is not a "fix" situation (at least not from Microsoft's perspective). They decided a long time ago to remove this feature and, AFAIK, have no plans to bring it back. Unless one or more of their bigger corporate customers insists they bring back the functionality, it's unlikely you'll ever see it again. Having worked at one of those companies, I can assure you that Explorer functionality is really of very little interest there.
To put this in perspective, this discussion has somewhere near 3000 views. IMO, that's significant. However, the discussions where people are complaining about the change to the Windows 11 right-click menu have over half a million views and Microsoft has not backed down from that change.
There's also an Explorer feature that wasn't removed (i.e. the checkbox is still there) but was broken in Windows 11 in January 2022 (yup, over two years ago) and still hasn't been fixed. That's the item labelled "Also apply this template to all subfolders". If it takes them that long to fix something that's apparently still supposed to work... well, you get the idea.