NavigationStack inside NavigationSplitView broken animation

In tvOS when using NavigationStack inside NavigationSplitView as below:

    @State private var selectedItem: String?
    @State private var navigationPath = NavigationPath() // Track navigation state manually

    var body: some View {
        NavigationSplitView {
            List(selection: $selectedItem) {
                Button("Item 1") { selectedItem = "Detail View 1" }
                Button("Item 2") { selectedItem = "Detail View 2" }
            }
        } detail: {
            NavigationStack(path: $navigationPath) {
                DetailView()
                 .navigationDestination(for: String.self) { value in
                    Text("New Screen: \(value)")
                }
            }
        }
    }
}

This example completely breaks the animation inside NavigationStack while navigating between different views, using withAnimation also breaks the navigation as the old view seems to be still in stack and is shown in the new view background.

I have also submitted bug report: https://feedbackassistant.apple.com/feedback/16933927