How Did the SegWit Upgrade Address the Transaction Malleability Issue?
The Segregated Witness (SegWit) upgrade addressed transaction malleability by "segregating" or separating the witness data (which includes the malleable digital signature) from the transaction's main data structure. Crucially, SegWit changed the way the transaction identifier (TXID) is calculated so that it no longer includes the witness data.
Since the malleable signature is no longer part of the TXID calculation, changing the signature does not change the TXID, thus eliminating the malleability issue.