I got the same issue. I built new PC (red team after long time being with intel & nvidia) . Anyhow, I got fresh windows, fresh drivers and everything. And got the same issue where "instant replay" doesn't function. Nor "record" , "live stream" or "screenshot" none of these features don't worked. Attempted the whole "disable HDCP" thingy even though I'm using DP, no result...
Posted bug report, reddit threads... hopefully here will yield better results.
CPU: Ryzen 7 7800X3D
MOBO: ASUS TUF GAMING X670E-PLUS GAMING
GPU: ASUS TUF GAMING RX 7900 XTX OC
RAM: DDR5 CORSAIR DOMINATOR 2x16 GB 6000MHZ
OS: Win 11 Pro x64