Reproduction steps:
1. Open the user’s attached project
2. Open the “Assets/Scenes/MenuScene.unity”
3. In the Hierarchy window, click “Grid” GameObject child “Scene Tilemap” GameObject
4. In the Tile Palette window, select a Tile
5. Set the “Z Position” to 1 or higher.
6. Mouse over the Scene view and observe the blue gizmo

Expected result: Gizmo of a tile is displayed at the correct height as set by the “Z Position”
Actual result: Gizmo of a Tile is displayed at the wrong height

Reproducible with: 2020.3.38f1, 2021.3.8f1, 2022.1.14f1, 2022.2.0b6, 2023.1.0a9

Reproducible on: Windows 10 Pro 21 H2