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Looks like Adobe recommends to run 15.4 with Rosetta2 if this feature is required. Defeats the purpose of native M1 support. Hopefully it will come back in a future release.
https://helpx.adobe.com/premiere-pro/kb/premierepro-and-macos-big-sur.html
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Wow, just noticed that this feature was missing since upgrading. I really hope it returns, but my I'm not optimistic.