Firefox extension does not access entries in desktop 1Password 7.app

I am migrating to a new mac, an M1 Macbook Pro running macOS Monterey 12.3.1 and Firefox 100.0. I installed 1Password 7.app [Version 7.9.4 (70904001) 1Password Store], restored my password entries from the old machine via a 1Password backup and restore, and logged in to the 1Password.ca account by which I pay for use of 1Password. Then I installed the Firefox extension "1Password v 2.3.3", and connected it to the same 1Password.ca account.

Now, when I attempt to log in to a website in Firefox, there is a 1Password logo which appears to be offering to help me log in. However, none of the password entries from the 1Password 7.app are visible in the Firefox extension. Since I have zero passwords in the my.1password.ca account, the FIrefox extension offers zero passwords also. Yes, the extension has "Integrate with 1Password app" turned on.

On my old machine, I had a Firefox extension "1Password extension (desktop app required)", version 4.7.5.90, updated 2019-06-26. This extension is able to see all the passwords in my local vaults.

Should the Firefox extension "1Password v 2.3.3" be able to see the passwords in my local vaults? I sure hope that support was not cut out as part of deprecating local vaults in 1Password 8.

1Password Version: 7.9.4
Extension Version: 2.3.3
OS Version: macOS Monterey 12.3.1