Panel search not working after upgrade to Grafana 12

Grafana version / OS
v12.0.1 and v12.1.0 (tested both)
Ubuntu 24.04

Goal
Enable and use the panel title search in global search.

Steps:
Added to /etc/grafana/grafana.ini:


Restarted Grafana service.

Issue
Search UI shows “Include panels” checkbox.
But searching for known panel titles returns no results (not even dashboards containing them).

Expected
Search should return panel titles (worked fine on v11.4):

Logs / Errors
No UI errors.
Logs only show normal dashboard re-indexing.

Docs followed
Grafana Docs: Search dashboards and folders | Grafana documentation

Notes
Worked in v11.4.
Broken after upgrading to v12.x.
Also reproduced on a clean v12.1.0 installation.

Can anyone confirm whether this is a bug in v12, a change in behavior, or if I have missed an extra configuration?

Thanks in advance!