Thanks, it does seem to work when enabling "Use device screen lock"
The only annoying thing is that the banking apps don't seem to "see" the biometrics now!
So unless this is a bug, it seems you have to decide between EITHER having to enter a fingerprint every time you want to start an app (after the screen locks) OR you can't have biometrics in the private space for using inside apps.
This plus the inability to put apps on the home screen makes me wonder why I shouldn't just use a work profile instead of private space? It "just works".