I've been having this same issue. Seems to be a known issue across Windows 11. I found an article (lost the original link) that suggested the Desktop folder sync with OneDrive is the cause. Disabling OneDrive desktop sync worked for me.
Windows 11 Browse For Folder Dialog Issue - Only Desktop
In several programs, when I need to set a folder location for example, and open the Browse Dialog, I'm only shown the Desktop folder. I can't access any folder outside of "Desktop". It doesn't make a difference to run the programs as admin.
Specs:
Edition Windows 11 Pro
Version 22H2
Installed on 21/09/2022
OS build 22623.730
Experience Windows Feature Experience Pack 1000.22636.1000.0
Windows for home | Windows 11 | Files, folders, and storage
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72 answers
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Anonymous
2023-02-09T12:40:07+00:00 -
Anonymous
2022-12-07T13:55:22+00:00 If changing/modifying the registry is the answer, then there is a bigger problem as you will have almost everyone who installs and have the latest version doing the same thing. That's a lot of people
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Anonymous
2022-12-07T06:18:53+00:00 The registry value change proposed does not fix the issue introduced in the November update. AS well, it breaks OneDrive (unable to rename folders on local machine but can via the portal).
So far I have yet to find a solution that allows us to keep Desktop redirection turned on without breaking the Browse for Folder dialog (corporate requirement to have it turned on).
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Anonymous
2022-11-09T16:41:16+00:00 I too have had the same problem since I installed the latest update to Windows 11, although I didn't make the connection at the time. The solution of removing the Desktop from my Onedrive backup has resolved the problem for me.