Option to hide the camera cutout has been removed as of Android 11. Samsung is definitely aware of it. You'll find multiple posts on reddit and the US samsung community about people complaining about it.
Samsung apparently claims that it was removed because they found that their beta testers didn't care about it. Some have speculated the reason is because google removed the overscan feature from android 11 and samsung had used that to create the functionality.
It is horrendous. So in the past week since I posted the answer, Samsung has also removed all documentation related to how to "hide camera cutout". So this definitely confirms that Samsung is aware and most like will never restore this feature. Take it how you will but it is a shame that this phone was only able to last me a mere 5 months while my old iphones and htc phoens lasted me for several years.