"Use system title bar and borders" setting is missing

The issue apparently lies with the latest version of Chrome. A solution was found on Reddit here:

For brave browser, the following steps are necessary:

  • Right click on the area next to the “+” right of the right most tab to open a context menu. Here the setting “Use system title and borders” can be checked.
  • Go to brave://flags and disable “use-ozone-platform”
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