APP_URL is not having impact on URL generated in Laravel; ASSET_URL works

I’m not a Laravel/PHP dev. Just trying to setup a service built in it..

Have setup APP_URL to a scheme & domain-name based url. And the views are generating links using route(..) function.
But, the links that are getting generate have Base URL at which it is browsed instead of APP_URL config.

For example:

If http://abc.domain, https://abc.domain and https://a12.domain all are endpoint of same app. And we have config for APP_URL=https://abc.domain.
Still depending on what we use to browse the page as; if visited via https://a12.domain.. it will generate route with https://a12.domain at base.

ASSET_URL are working. APP_URL is not having any impact though.

Versions in use are

  "laravel/framework": "^8.12",
  "laravel/helpers": "^1.4",
  "laravel/tinker": "^2.5",