System Information
Operating system: Windows-10-10.0.19044-SP0 64 Bits
Graphics card: NVIDIA GeForce GTX 1650/PCIe/SSE2 NVIDIA Corporation 4.5.0 NVIDIA 466.77

Blender Version
Broken: version: 3.1.0, branch: master, commit date: 2022-03-08 18:16, hash: rBc77597cd0e15
Worked: 3.0.1

The video illustrates the problem clearly. Notice how in 3.0.1 when the mouse hovers over the gizmo handle, the handle activates as expected, ready for interaction. And then in 3.1, you'll see that the handle is only activated when the mouse pointer is exactly over the handle line, which makes it practically impossible to grab as you're working away (Notice how it flashes as the mouse moves laterally)

This only goes for the scale gizmo handles btw. Weirdly enough, only the Z axis handle seems to be broken. All Axis on Move and scale behave as expected.