excludeGitIgnore not working in Insiders?

[chrisdias]

Does this issue occur when all extensions are disabled?: Yes/No

Version: 1.69.0-insider (user setup)
Commit: f361c5b71d6676cfc6de97cdb1cc40b08bf7d994
Date: 2022-06-22T05:17:09.661Z
Electron: 18.3.4
Chromium: 100.0.4896.160
Node.js: 16.13.2
V8: 10.0.139.17-electron.0
OS: Windows_NT x64 10.0.22000

Steps to Reproduce:

1. create a .gitignore file that excludes node_modules
2. set "explorer.excludeGitIgnore": "true"

Result: Nothing happens. Do the same in Stable and the folder is hidden. Here is a picture with Insiders on the left and Stable on the right: