The nRF700x driver included in `sdk-nrf` appears to only partly implement the WiFi management API from Zephyr.
It implements `struct net_wifi_mgmt_offload` to trigger WiFi actions (scan, connect, disconnect, etc), and calls `wifi_mgmt_raise_twt_event` for TWT support, but never calls `wifi_mgmt_raise_connect_result_event` or `wifi_mgmt_raise_disconnect_result_event` in response to network events. Instead it is using the ethernet API for some reason? (`net_eth_carrier_on` and `net_eth_carrier_off`).
As a result, code that has subscribed to WiFi events will never receive any of the relevant events:
net_mgmt_init_event_callback(&wifi_cb, event_listener_wifi, NET_EVENT_WIFI_CONNECT_RESULT | NET_EVENT_WIFI_DISCONNECT_RESULT);