After a month or so of trouble shooting the results look like this:
I have applied many recommended "fixes" in a very systematic manner, unfortunately the behavior remains the same, "Photos" and "Movies & TV" eventually start having the error again.
I have 2 desktops, one runs Win10 the other was upgraded to Win11
Win10 desktop has never had this problem
The problem emerged after upgrading a desktop to Win11
I run anti virus regularly on both desktops
This problem only emerged after upgrading one of my Win10 desktops to Win11
So considering my results, at this point, the most likely conclusion is that for some configurations, Win11 causes this problem. This is not happening to every Win11 user, but it is happening to some Win11 users.
Doing "restores", "Win11 refresh", reinstalling the apps, refreshing the policy, reinstalling drivers does not solve the error. So to solve this I think you would need to provide some kind of debug tool that would be able to trap exactly what is going on when the problem re-emerges - you have to see the exact state of the OS when this happens to see exactly what process failed, what happened to prevent the OS from finding the jpg or mp4 file, my best guess is that addressing data is somehow being corrupted
Another idea would to provide a tool that would launch "Photos" "n" number of times, to see if there is some repeatable behavior (e.g., does this error always happen after "n" initiations?)
P.S. I have run Restoro on the Win10 desktop as well, the Win10 desktop has not yet had this problem, so its not likely that the issue is being introduced by Restoro.