Folder Tree Manual Scrolling

Can you tell me your system DPI scaling percentage? (You can find it by right-clicking the desktop and choosing Display Properties.)

That looks like a bug that existed in one of the earlier betas but should have been fixed in 12.23, and it's OK when I try with 12.23 here, but it's possible that a particular scaling factor might still cause the old problem.

It may also be worth a try to use the current beta version 12.23.3. (It has proven stable and the next stable release is mostly a formality at this point.)