In the Appearance section of Special:Preferences there is an option for Underline links which can be in three states: Never / Always / Skin or browser default.
In all other Wikimedia deployed skins this does not affect link hover states, which are always underlined. However in Vector 2022, selecting Never means that links are not underlined even when hovered. This is particularly noticeable for visited links, which do not have a color change on hover so have no visual change at all.
Codex spec has links underlined on hover: https://doc.wikimedia.org/codex/latest/components/mixins/link.html
I think this might be a regression in Vector 2022 from the recent link changes, but not sure.