This is not a normal retina configuration. This is a highly unusual configuration where the framebuffer is much larger than the screen resolution and gets scaled down. Obviously it sucks if it used to work and now it doesn't but almost no one wants this which probably explains why Apple doesn't care.
In my case it's a standard LG UltraFine 4K monitor plugged into a standard 16" M5 MacBook Pro via standard Thunderbolt (via USB-C) - not sure what's not normal about this? I've confirmed it with other monitors and M5 Macbook Pros as well.
Actually, I don't even think it's possible to run HiDPI mode at the native resolution scale from within the macOS settings app, you'd need something like `Better Display` to turn it on explicitly.