Thanks for these details. I looked at the component in UI gallery and it seems to be using Tab group for displaying tabs as menu when needed which is a legacy component. Can we have the same behaviour implemented using Layout group.
It was not present in a tab layout group but did always exist in tab group.
Right now it is not in implementation and I am not sure if it is likely to be put in anytime soon.
You can go with the Tab group if you really need this functionality. Also you can request to raise a feedback item which would be taken into consideration by management and if deemed feasible would be implemented into the product.