On the one hand, optics of pancake lenses is quite simple, without many air-to-glass surfaces where you can catch unwanted flares. On the other hand, their mechanical construction, being so tight, limits the number of apertures and ribs. In this case you additionally deal with a wide angle of view.
As a result the performance against bright light of the Nikkor Z 26 mm f/2.8 is not great. You can catch reflections without any problems; they remain visible even when the sun is moved outside frame corners.
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