This is a standard way to form bridges in WiFi networks and does not require any ARP proxying. In practise this requires certain OS/driver/firmware/chipset combinations to work though.
WDS is not something a client/STA can ask an AP for, it's a different mode of operation. What you need is 802.11ak GLK (General Link). Unfortunately, that one also isn't really negotiable and never gained much traction.
Buried in-thread, both macOS 26.6 and 27 beta have fixed the issue — has anyone studied whether they implemented this or resumed the old proxy arp method?