Simply open the Relationship Graph and you can see that the button for Isolated Files is on by default, while the actual display is the opposite, just change the status of the default button to off to fix this problem.
Did you follow the troubleshooting guide? [Y/N]
I think it is normal that the default isolated files should be off.
When the isolated file is on it should only show the isolated file, and when it is off it should show it with all the other files.
As this note says, it is now the exact opposite of what is expected, the Isolated Files button is on and the actual display is indeed off, only when the Isolated Files button is off will the isolated files be displayed separately.
Obsidian version: v1.4.14
Installer version: v1.4.13
Operating system: Windows 10 Pro 10.0.22631
Login status: not logged in
Insider build toggle: off
Live preview: on
Legacy editor: off
Base theme: light
Community theme: Minimal v7.3.2
Snippets enabled: 0
Restricted mode: off
Plugins installed: 8
Plugins enabled: 8
1: Style Settings v1.0.7
2: Mind Map v1.1.0
3: Minimal Theme Settings v7.3.0
4: Editor Syntax Highlight v0.1.3
5: Advanced Tables v0.19.1
6: Custom Attachment Location v0.0.9
7: Find orphaned files and broken links v1.9.1
8: Tag Wrangler v0.6.1
Custom theme and snippets: for cosmetic issues, please first try updating your theme and disabling your snippets. If still not fixed, please try to make the issue happen in the Sandbox Vault or disable community theme and snippets.
Community plugins: for bugs, please first try updating all your plugins to latest. If still not fixed, please try to make the issue happen in the Sandbox Vault or disable community plugins.