Entity Framework Core in memory reading wrong data type

Question

My functional tests use Microsoft.EntityFrameworkCore.InMemory version 7.0.20.

When I run the functional tests for any entity that has a dateonly field, I get an error:

Expression of type 'System.Nullable`1[System.DateOnly]' cannot be used for parameter of type 'System.DateTime' of method 'System.DateOnly FromDateTime(System.DateTime)' (Parameter 'arg0')

I use this DateOnlyConverter:

public class DateOnlyConverter : ValueConverter<DateOnly, DateTime>
{
    /// <summary>
    /// Creates a new instance of this converter.
    /// </summary>
    public DateOnlyConverter() : base(
        d => d.ToDateTime(TimeOnly.MinValue),
        d => DateOnly.FromDateTime(d))
    { }
}

This is the entity configuration:

public void Configure(EntityTypeBuilder<Payback> builder)
{
    builder.ToTable("Paybacks").HasKey(k => k.Id);

    // other properties

    builder
      .OwnsOne(p => p.CurrentPaybackSchedule, s =>
      {
        s.WithOwner();
        s.Property(s => s.ScheduleDate).HasConversion<DateOnlyConverter>().HasColumnName(nameof(Payback.CurrentPaybackSchedule.ScheduleDate));
        s.HasIndex(p => p.ScheduleDate);
      });
}

Entity

public class Payback : BaseEntity<Guid>, IAggregateRoot
{

  //other properties 

  public PaybackSchedule CurrentPaybackSchedule { get; private set;}

  public Payback()
  {
    //ef
  }
}

public class PaybackSchedule : ValueObject
{
  public DateOnly ScheduleDate { get; init; }
  public PaybackScheduleStatus Status { get; private set; }
  public DateTimeOffset TimeEntered { get; private set; }

  public PaybackSchedule(DateOnly scheduleDate, PaybackScheduleStatus status)
  {
    ScheduleDate = Guard.Against.Default(scheduleDate, nameof(scheduleDate));
    Status = status;
    TimeEntered = DateTimeOffset.Now;
  }

  public PaybackSchedule()
  {
    //ef
  }

  public void UpdatePaybackScheduleStatus(PaybackScheduleStatus updatedStatus)
  {
    Status = updatedStatus;
  }

  public PaybackSchedule CloneWithRescheduledDate(DateOnly newScheduleDate)
  {
    return new PaybackSchedule(newScheduleDate, Status);
  }
}

I am not sure why the in memory database is pulling the field as a dateonly.

I have checked the versioning of all my EF Core packages and they all seem to be at v7.0.20.

When I run the query outside of the functional tests the code works.