This Show recent searches when I hover over the search icon setting no long works since 22621.1250, and has been removed since at least build 22623.1325.
The Search button on the taskbar allows you to quickly use Windows Search (Win+S) to search for apps, documents, email, files, folders, music, people, photos, settings, and videos on your device, and to search the web.
The Search button on the taskbar also allows you to quickly open your Top apps and Recent apps, and perform Quick searches to web search for today in history, new movies, translate, markets today.
When you hover over the search icon on the taskbar, you will see your recent searches by default.
Starting with Windows 11 build 22468, Microsoft added an option to turn...