Hello John Welch,
What you are seeing is not a bug but a deliberate design change. Starting with 24H2, Microsoft removed the legacy registry options that allowed Alt+Tab to display the classic icon grid with window titles. The system now enforces the modern task switcher with live previews. This change was introduced as part of the Windows Shell evolution, and the registry keys under HKCU\Software\Microsoft\Windows\CurrentVersion\Explorer that previously controlled Alt+Tab behavior (such as AltTabSettings) are no longer honored. That is why your attempt to restore the old grid view does not work.
Unfortunately, there is no supported way to revert to the classic Alt+Tab interface in 24H2. Microsoft has deprecated the old implementation and tied the task switcher to the new compositor pipeline. The z‑order handling you mentioned with Alt+Esc is also affected because the shell now manages window stacking differently, prioritizing live previews and virtual desktop integration.
The only options available today are to adjust workflow around the new interface or use third‑party window managers that replicate the classic Alt+Tab grid. However, from a Microsoft support perspective, the functionality you want cannot be restored through registry edits or system configuration anymore. If this change is disruptive to your environment, the only official path is to provide feedback through the Feedback Hub so that Microsoft can evaluate whether to reintroduce the classic mode as an accessibility option.
I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!
Domic Vo.