Photoshop Menu bar not working properly

Hi,

I am wondering why this is, and surely this must be a bug.

I am trying to use PS in full screen mode with menu bar, but the menu bar keeps the color of the wallpaper I'm using and I find this really distracting. I read that you can enable "scale to fit below built in camera" (screenshots below), but it doesn't do anything. 

 I am uploading screenshots of how I see it, with a blue menu bar (from the wallpaper), of the "scale to fit" option enabled and a .gif file of how I think it must be working, an example of using Safari. 

I hope there's a solution to this to look like the Safari .gif.

Using: Macbook Pro M3 Max, 36 GB

OS: Sonoma 14.2