Split Fiction Bug - Boss Doesn't Recognize Input

We are near a place where you must mash Y to defeat evil Mio before she wrestles away a sword from Zoe.

But the input for that action is not recognized at all. We even went back and played the whole chapter and defeated her on the main circle area again, but then got stuck at the same place.

We tried setting the options to allow for only holding Y rather than mashing it repeatedly, but still at that is not recognized. At the moment when we are needing to hold Y, the input does nothing and the boss wins.

We also tried setting the accessibility option to "automatically proceed" on these mash prompts. No success there either.

We cannot proceed.

Videos showing issue posted here. https://1drv.ms/a/c/2813c6e4993c726f/Erd9ut-JblVOuTE3OXoNxFIByK1L3LAzNJILQY9hHmrVdQ 

Xbox series X