Inlay hints are working well on my end!
The only issue I seem to be having is when the server doesn't support inlay hints, and I have " (add-hook 'eglot-managed-mode-hook #'eglot-inlay-hints-mode)" in my config.
It keeps erroring in this case and the connection to the lsp server seems to terminate in some cases. In any case it causes interference with other things, like completion which can stop working.
You can try it with pylsp, and add "(add-hook 'eglot-managed-mode-hook #'eglot-inlay-hints-mode)" to your config. Trying to write a simple main function will show issues.
For example this python code:
def main():
pass