Virtual monitors not working when HAGS is enabled

I am on an RTX 5080 (driver 616.56). When HAGS is on, the virtual monitors show up in the windows display manager but not in nvidia control panel's monitor arrangement. The monitors stay inactive in windows display manager and do not allow extending/duplicating/main display. When I turn off HAGS, everything is magically solved. I am not sure this has been posted yet, claude told me this is a new finding and worth reporting so here I am here. Also, I am new to github so apologies if this is the wrong section for my comment.