Hey tomato_1 Thanks for your response. 1Password for Safari maintains a connection to our encrypted servers (we call it the IDBDatabase Connection) which allows its functions to work properly. However, if your browser's cache, cookies, or history is cleared, that database connection is wiped, and the extension may not work (until you restart the browser or sign in again). The old built-in extension in 1Password 7 was a companion to the app and did not rely on this connection, so that is why the behavior is different.
Are you able to adjust your workflow a bit and not clear your cache/cookies/history as often? One alternative is to https://support.apple.com/guide/safari/browse-privately-ibrw1069/mac, which would not save the details of your browsing history, and then use 1Password from there.