I just updated to MacOS Sequoia 15.7 as well as safari 26.0 and it just totally bricked the compact tab view. Now, I am unable to click on the compact tabs to close the tab / copy / edit the search url.
I know they removed the compact tab view from MacOS Tahoe since the first beta but they really just bricked the feature on Macs still on 15.7, why even still show the option for compact view in the settings 💀💀💀
Such a bad decision to remove the compact tab view option, considering they only introduced it a few years ago. (Apparently they removed it because they struggled to implement it in the liquid glass style, yet again, proving they pulled the trigger to implement liquid glass for the sake of having a revamp)
temporary solution:
switch back to separate tab view in settings, everything is back to normal and responsive.