P: (Win) PS v26.1 Classic Gradient Editor creating a new Preset instead of changing the gradient

Issue: Classic Gradient Editor doesn't change the active gradient, instead creates a new Preset

• Photoshop version:  26.1.0 20241113.r.121 158e617 x64
• OS: Windows 11 64-bit

Steps to reproduce:

1. Create a new document.
2. Select the Gradient tool, then Classic gradient
3. Click on the box containg the gradient to open the Gradient editor
4. Make any changes to the gradient then click OK

Expected result: Active gradient should reflect the changes we just made
Actual result: The new gradient is saved as a preset while active gradient stays unchanged

It started happening after I updated Photoshop to version 26, it worked perfectly until then. I cannot imagine this being anything other than a bug. I included a video showing the bug in action.

{System Info added as attachment}