"on open" handler is not receiving dropped applications but works for other file types

I made a an AppleScript app that accepts dropped applications (it relaunches them, I need that for one of my other apps).

This works on older macOS versions (e.g. High Sierra) just fine, but I found that on Sequoia dropping apps onto the droplet won’t pass these app references to the “on open” handler. Dropping other kinds of files works, however.

I basically started a new simple droplet in SD 8 and saved it as an Application (Apple). Nothing fancy.

Any idea how to make this work? I tried signing and notarizing the app but that doesn’t make a difference.

I suspect that’s a new security feature in recent macOS versions, but I can’t find out what I need to do to make it work.