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Quick follow up. Service center found a small burr on the motor screw that telescopes the steering wheel. Cleaned it up and it works. In my case, it seems the issue was mechanical and not software related.
Happened to me yesterday with my 2022 MP3. Doesn't appear to be software update related as the last update I received was over a week ago. Tesla is set to replace telescoping motor under warranty. Just thought I'd mention it in case it's a trend.