Your Avocado Wallet is a smart contract wallet. When you create a new account, your contracts are not immediately deployed on the chain - deployment happens the moment you do a transaction on that specific chain. If you try doing a transaction before your contract is deployed, some dapps might be confused and might consider your address as an EOA (Externally Owned address, like Metamask) and not a Smart Contract Wallet. This leads to unexpected behaviour.
First-time users might face some issues interacting with dapps IF they haven't done any transaction on Avocado on that chain before.
What's the solution?
You can do any in-app transaction to deploy your contract. In-app transactions are 'native' transactions - like bridge, swap, send from within the app.
You can also use the in-app utility to deploy Contract on different chains. You will see this option if you try to connect a dapp to a chain that doesn't have your wallet deployed yet.
Receiving funds does NOT deploy your Smart Contract.
Do I have to deploy contract on all the chains separately?
Yes, you have to deploy Smart contract on each chain separately before you can start using that chain.