Our organization is being hit with this today as well. I can duplicate it at will on our session hosts and they are running edge 149.0.4022.52 which came out last Thursday I believe. It would have applied during the weekend reboots hence why we see the issue today at our organization. They are running Windows 11 Enterprise multi-session. My local pc is running windows 11 Enterprise and I have the exact same build of edge and cannot replicate the issue. It appears that it started with this current update of edge but only on our multi-session version of windows from Azure.
Due to some design constraints I don't have additional drive letters available at the moment that aren't already reserved to create a mapped drive to get around this.