When the "Wrap Current Game" function is used on a game in the new list view¹, the highlighted game gets cloaked in stripes instead of getting properly wrapped. After this point, the d-pad & A+B buttons won't do anything within the Launcher list. (Other buttons, such as Menu and Lock, as well as simulator functions, still work)
Fully refreshing the Launcher using any method (⌘+R, opening another app from the slide menu, relaunching the simulator, etc.) will bring in the appropriate wrapping on the game, as well as restore functionality back to the control buttons.²
I'm running the sim (vers. 2.0.0-beta.2) on macOS (vers. Ventura 13.3.1a)
¹ The Wrap Current Game function still works perfectly fine when viewing the games as cards.
² Locking and unlocking the sim will make the proper wrap graphic appear, but the d-pad & A+B buttons still won't work within the Launcher.