Since you’ve already reinstalled Windows multiple times and restarted Explorer/DWM, the issue usually comes from a problematic update that may have been installed via Windows Update.
I think it’s the KB5124008 update. You can uninstall it from Windows Update history and test. Note that KB5124008 fixes a large number of vulnerabilities, including actively exploited zero‑days, so uninstalling it reduces your security posture. Only uninstall it if the issue is blocking critical functionality and you need those features to work. Here are the release notes: https://support.microsoft.com/en-us/servicing/os/windows-11/2026/09/kb5124008-windows-11-24h2-25h2-security-update
In case you want to uninstall:
- Open Settings > Windows Update > Update history > Uninstall updates.
- Uninstall KB5124008
- Reboot and test the taskbar, Start menu, and folders.
If it fixes your issue:
Pause Windows Update so it doesn’t get reinstalled, and resume it later when Microsoft has fixed it in an upcoming update.
Alternatively, you can keep KB5124008 installed and wait for a fix if the issue isn’t critical for you..