Physics simulation mode is not set correctly when upgrading a project

Reproduction steps:
1. Open the attached project “UnityCity (2022)“
2. Open the “Main Scene“ Scene
3. Enter Play Mode
4. Try to drive the car by pressing the “W” key

Expected result: The car starts to move
Actual result: The car doesn’t move

Reproduced with: 2022.2.0a11, 2022.3.1f1, 2023.1.0b20
Not reproduced with: 2021.3.26f1, 2022.2.0a10
Couldn’t test with: 2023.2.0a18 (crash)

Reproduced on: macOS 13.0.1 (Intel), macOS 13.3.1 M1 (user reported)

Notes:

• Tested on Player