Ok so an update, I have been talking to Kate through email.
Basically: On WIndows 11, the snip and sketch when tool always triggers this behavior as well when you hit "new" to start dragging to capture a region to save.
Looks like anything that goes into some sort of full screen causes this.
The error is
"The device MB16AC4 (location 0000.0014.00000.023.001.003.003.001.000) is offline due to a user-mode driver crash. Windows will attempt to restart the device 5 more times. Please contact the device manufacturer for more information about this problem.
I installed Windows 10 on my 2nd SSD, and there is no issue. Everything just works. So this is indeed a driver issue and not a hardware one.
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