Hi Sibro.
I think I found what is causing the problem, comparing with one system that did not have the issue.
There is one feature called SearchBoxOnTaskbar that enables the new longer search box in the taskbar with the Personalization > Taskbar to choose 4 different options for the Search:
Hide
Search icon only
Search box
Search button
https://aka.ms/AAj00u5

With that feature enabled I get the problem in Safe Mode as you see below, if I disable that feature the problem goes away, see second screen shot below. 🤣🤣
They always give me the ones with the bugs. 😝🤷♂️

If I disable the feature, I mentioned above then safe mode work fine and the search button is also smaller and there are no personalization options i taskbar settings. 🤣🤣🤣
