Everything functions, just no Loft, which IMHO stinks since you can't change the environment like you before navigator, just the skybox. And you can't add custom skyboxes.
I fixed it anyway, no thanks to Meta. A recent update in Quest Games Optimizer added an experimental function to restore the old UI - except rebooting reverts to Navigator. I tried this and a popup showed up asking if I wanted to download Loft. Before I could click on yes it started to download Loft on it's own. And now Loft has been restored. And I can switch back to the old preferred UI.
Which begs the question why isn't Navigator an experimental feature? It's too buggy really for full release.
Factory resets everytime I've done them were a complete waste of time solving nothing and taking days to reload my games and apps and videos and tweak settings back to the way I like.
The only improvements in Navigator that I care about is you can pin up to 10 apps and now you can unpin unwanted stuff like the Store, Chat, Horizon Worlds, etc.