I'm experiencing this same issue, in the meantime with a production version of Windows 11, specifically Windows 11 Home 21H2 OS build 22000.282, Windows Feature Experience Pack 1000.22000.282.0. Updated to the latest Directory Opus 12.25. For reference, attached are screenshots from the context menu on a local OneDrive folder 1) from Directory Opus, 2) from within Notepad > Open menu.
