Upgraded to 2020.3.0f1; Searching for sprites bugged

I recently upgraded my project from 2019.4.X to 2020.3.0f1, and the most annoying thing is happening, and I couldn’t figure out how to change this behavior.

When I am selecting a sprite for a UI image, it starts fine showing all previews:
6961583--819971--upload_2021-3-22_19-21-10.png

Typing in a single letter in the search bar works fine as well:
6961583--819974--upload_2021-3-22_19-21-45.png

But as soon as I enter a 2nd+ letter into the search bar, the previews disappear - also notice that the preview scale slider on the top right disappears:
6961583--819977--upload_2021-3-22_19-22-28.png

Anyone knows how to change this annoying behavior??
Thanks

Bump