Moving a tab to a new non-existing window opens a new window

I have a multiple workspaces with custom names & icons saved.
When moving a tab to a new (non-existent window/workspace yet) it creates a new app window which is not expected as I can operate all of the workspace within one app window.
If I understand correctly "switch saved windows in-place" setting does this, so I suppose this should also affect moving tabs to a new window.

Expected a new window/worksapce to be created within the same app window.

0.99.126.4.1-beta

Monterey (12)