GPS time, as in the actual timestamps used in the protocol, are an absolute scale like TAI. However, most GPS devices that you use will convert this to UTC using a leap seconds table. Just like literally everything else on the planet. Most of the time when people say "GPS time" what they mean is UTC using a GPS reference. However in physics and astronomy you do find people using GPS absolute scale times directly.
There is no problem here. GPS works exactly the way it should. Leap seconds are annoying but they're a civil convention not a technical limitation. Personally I'm all for abolishing them. By the time the drift actually matters to every day lives we'll likely have technological infrastructure so different the idea doesn't even make sense.