Reproduction steps:
1. Open the “ReproProject“ project
2. Open the “Assets/Scenes/SampleScene“ scene
3. Select the “Circle“ GameObject in the Hierarchy window
4. Toggle Debug Mode by clicking the More Items button in the Inspector window and selecting Debug
5. Deactivate the “Circle“ GameObject by clearing the checkbox to the left of the GameObject’s name in the Inspector window
6. Observe the Scene View
Expected result: The circle is not visible
Actual result: The circle is visible
Reproducible with: 2022.2.16f1, 2022.3.16f1, 2023.2.4f1, 2023.3.0b1
Not reproducible with: 2021.3.33f1, 2022.2.15f1
Reproducible on: Windows 11 Pro (22H2)
Not reproducible on: No other environment tested