Bug: Localhost subdomain (Eg: app.localhost:3000) doesnt mount Phantom onto window

[arunbluez]

I am trying to implement solana-labs/wallet-adapter in my latest next 13 project. I want to implement the wallet connection for my subdomain on localhost: app.localhost:3000, but the wallet adapter doesn't detect phantom wallet.
After some research i can confirm that the phantom wallet doesn't mount into the window object only when i use subdomain in localhost. it mounts normally when there is no subdomain.

Is there a fix for using subdomain in localhost development?