As explained here by Daniel (and if I understood correctly) this option now works only for ties between noteheads and not for ties above/below.
So, for the chords (including condensed music, apparently), it will only work if it’s set to “All between Noteheads”
In your example with the vln 2 harmonics, I think it works because the F and G ties in the top staff will be anyway “between”, whatever your setting is. So they create the additional space and everything else follows:
