We can confirm, we updated to Version 2305 -16501.20196 and expirience the same issue again. It was solved with the update a few weeks ago but has returned again to probably all users in our organization.
I am on 2305 - 16501.20228 Click-to-Run
I got the issue again yesterday when saving an embedded image from the body of an email in Outlook Desktop.
The Save as Image option will always create the issue.
I don't get the issue when saving attachments but that is what used to do it.
There is a difference between the behaviour of Save As / Save All for attachments and Save Image As.
Saving an attachment defaults correctly to the Save location specified in my Outlook settings (My User Profile is a mapped drive containing My Documents)
Save as Image tries to open the location as a UNC path to the file server to the last used location in the same location that my profile home drive is mapped to.
This is clearly a coding difference and indicates this is a problem with the way 365 opens UNC paths.
I have investigated a report that this is the way that 365 calls to a network location when the network location is not using Encrypted File System (EFS) but the source file is.
Saving documents to network server is slow - Office | Microsoft Learn
Although our source folders are not using EFS our drives are using Bitlocker so the whole disk is encrypted.
I have already applied the workaround of disabling EFS in the registry of the server because it was not applied to any volumes.
It does not stop the Save as Image bug but it did seem to help with a very similar bug we were seeing with Excel both 2013 and 365. The article referenced above does say the bug has been there since Office 2010 and they haven't fixed it.
Based on that I am not betting on MS fixing this one anytime soon.