From the screenshot: notice we only see "github.com":
Yes it is possible to see full path by actually selecting the URL:
But I would like to see the full URL always - without that extra step. Is this possible?
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Yes, it is possible.
Open Safari Preferences window using the keyboard shortcut Command + , or by going to Menu bar → Safari → Preferences..., and go to the Advanced tab. Check Show full website address.
Once this setting is enabled, Safari will always show the complete address for the currently open webpage, even when the Smart Search Field is not in focus.