I would like to add my report regarding the issue mentioned above.
This issue was first observed while using Python 3.12.7 with Anaconda3 on Windows 11. Although switching to Python 3.11.11 initially seemed to resolve the problem, the bug reappeared after I restarted my PC, and now the optimization fails to work correctly on either version.
I have even tried installing previous nightly builds of Avogadro2 that I had downloaded in the past, but the results remain the same, which leads me to believe the issue is related to the Python environment itself. Interestingly, I have tested this across three different computers, and while xTB geometry optimization works perfectly on two of them, the problem is isolated to this specific machine despite all of them running Windows 11 and similar Anaconda setups.