Keybinding "Lower window below other windows" lowers windows below the desktop icons

Steps to reproduce on Jammy LTS:

1. Create an new empty user
2. Login using Wayland
3. Open "Settings" -> "Keyboard" -> "View and Customize Shortcuts" -> "Windows" -> "Lower window below other windows"
4. Click on the setting "Lower window below other windows" and assign a keybinding, eg Alt-Down
5. Close settings
3. Find the "Home" icon on the desktop
5. Open a terminal and place it over the home icon
6. Press the keybinding "Lower window below other windows" and observe that the terminal window is lowered below the Home icon. eg the Home icon becomes visible on top of the terminal window
7. Try click on the Hamburger Menu in terminal and observe the menu does not open but the window raises above the Home icon.

Logout, login under X mode and repeat. Notice that the window does not lower below the home icon and that the Hamburger Menu works on the first click. This is the expected behaviour of this feature going back at least 10 years.

For Ubuntu users coming from the previous LTS (using X) this is a behaviour regression.

I'm guessing this is mutter because it is wayland specific and mutter src has the "lower" keybinding which is described as the same "Lower window below other windows"

ProblemType: Bug
DistroRelease: Ubuntu 22.04
Package: mutter (not installed)
ProcVersionSignature: Ubuntu 5.15.0-43.46-generic 5.15.39
Uname: Linux 5.15.0-43-generic x86_64
ApportVersion: 2.20.11-0ubuntu82.1
Architecture: amd64
CasperMD5CheckResult: pass
CurrentDesktop: ubuntu:GNOME
Date: Fri Jul 29 11:58:21 2022
InstallationDate: Installed on 2022-06-25 (33 days ago)
InstallationMedia: Ubuntu 22.04 LTS "Jammy Jellyfish" - Release amd64 (20220419)
SourcePackage: mutter
UpgradeStatus: No upgrade log present (probably fresh install)