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I don't know anything about UK law, but apparently the act still allows for 92 hereditary peers[1], and indeed:

"The most recent grant of a hereditary peerage was in 2019 for the youngest child of Elizabeth II, Prince Edward"[2]

[1] https://en.m.wikipedia.org/wiki/House_of_Lords_Act_1999

[2] https://en.m.wikipedia.org/wiki/Hereditary_peer

I was specifically referring to hereditary peerage in the House of Lords, which was almost completely done away with. At around 13% of members, the chamber is largely no longer a chamber of hereditary peers. Hereditary peerage and hereditary peerage participation in the house of lords are separate. There are around 800 hereditary peers, but since 1999, only 92 of these hereditary titles have a spot in the house of lords. The hereditary peerage granted to Prince Edward is not one of the 92 hereditary peerages in the House of Lords, so it doesn't allow him participation.

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