Yes we are still facing the issue. I am again sharing my point here, the setting clearly says “Allow meeting participants to send a private 1:1 message to another participant.” we do not want that. Currently it is off at our end still from App SDK our participants are able to send message Privately to our host, without any issue. But in the Web SDK when a participant send the message to the host or vice versa it is not visible to the recipient.
I request you to please share my point with your development team. As I have already shared with you it is an urgent issue and our clients are complaining a lot.