I have not yet installed any of my mods. I updated on Thursday (August 4, 2022 .... after the "fix" patch was released).
Before I updated, I removed my entire "The Sims 4" folder out of my documents and placed it on my desktop and then let the game create a new folder.
I made a new test sim so I could get to the worlds (I'm in the process of creating a World Save Template so I've only been downloading lots, building or decorating).
I went into the game settings and turned Wants/Fears off yesterday.
I just tested, and they're back on again ..... so I can confirm this issue is not from mods or saves since I have neither in my TS4 folder.