This probably won't help anyone unless they're debugging, but I experienced this bug after realizing that OneDrive was going to sync up a game's mods folder that I had copied into Documents on a fresh Windows 11 install. Tried to exclude those folders in OneDrive, but that just caused it to delete the files that it wasn't allowed to sync. I stopped a sync mid-transfer and tried to exclude all of Documents, hoping that it might restore them to the default location instead of within OneDrive, but it didn't. Ended up unlinking the account entirely and restoring Documents from Recycle Bin.
Somewhere in the hubbub this exact Explorer issue started popping up; pretty sure it was after I tried to exclude all of Documents from the OneDrive sync. Kept happening even after I uninstalled OneDrive, and still after I reinstalled it (although this time I didn't re-link the account).
Fortunately, the error just stopped happening after I rebooted. The only other debugging I had done before the reboot was reset all of my default apps in Windows' settings, but I should note that the issue still occurred right after I did that.