@mylan @delroth For me it worked on my pixel 7 with a screenshot I took a minute ago. Revealed the deleted portion of the screen. Phone is fully up to date according to settings app.
I have not received the march security update yet, though, so it seems they haven't rolled it out to everyone.
Thankfully I have only had a Pixel for a week, and have never used that tool to crop. But I imagine there are millions, if not billions of screenshots in the wild suffering from this. Yikes...