macOS Monterey Mission Control "Show Desktop", no more interaction with Desktop's content?

I've always been using Hot Corners extensively for Mission Control to show my Desktop and interact with its content. Now, on my new machine (MBP M1Max, Monterey) I can still use the commands to show the Desktop, however I am not able to interact with it. No selecting, no drag and drop, nothing. Instead, the cursor transforms to a slender upward arrow with no apparent function. Anyone else familiar with this problem? Thanks a lot!