Reproduction steps:
1. Open the attached "Increments.zip" project
2. Select the “Cube” GameObject from the Hierarchy
3. Select the Transform tool in the Scene View or press Y on the keyboard
4. Hold down the Control key while using one of the rotation gizmos

Expected result: GameObject rotates in increments
Actual result: GameObject rotates with no increments

Reproducible with: 2023.2.0a4, 2023.2.6f1, 2023.3.0b3
Not reproducible with: 2021.3.34f1, 2022.3.17f1, 2023.2.0a3

Reproducible on: Windows 10, Windows 11
Not reproducible on: no other environment tested