Can't Turn On Scaling Difficulty

[NotoriousNkruma]

Currently on the latest console (Xbox) patch 3.5 when creating a new game cannot toggle scaling difficulty on or off and do not receive mid or late game scaling options.
Current DLC installed: Expansion pass one and Synthetic Dawn

 

[Bl4ckSh33p]

See here:
Thread 'Scaling Difficulty can't be turned on (PS5)' https://forum.paradoxplaza.com/forum/threads/scaling-difficulty-cant-be-turned-on-ps5.1612266/

 

[:vSTAMPv]

Same as the above with all DLC installed including new Toxoids. Xbox Series X