This came up previously in this thread and this one. Basically, the behavior comes from RealityKit’s HoverEffectComponent. Apple has (as of a couple days ago) let us know about a potential workaround, and we will include an option for that in a future version.
As for your example, if you submit a repro case as a bug report and let us know the incident number (IN-#####) we can look into it. If it regressed from 1.2.3 to latest, then it sounds like a bug. The only note in the changelog that seems like it might be relevant is this in 1.3.9: “Improved performance of updates to raycastable UGUI meshes (Images/RawImages)”, which changed the way that we create UI ShapeResources for raycasting (because creating new ones each time the UI changed was causing a big slowdown). You might be able to get around this issue by using an explicit Collider component, but I’d have to experiment with your example to find out.