I just reinstalled KB5003214 to test the
New & Interests option. I normally have this disabled.
After installing the update, the described issue came back. Another thing I neglected to mention in my initial post is that while this issue is "active", there is also a noticeable delay when closing the application window for windows explorer, task manager, and the like.
After turning the News & Interests option on for icon only, the issue stopped occurring. I then turned the option off, and the issue was still not occurring. Keeping the News option off, I rebooted my machine, and the issue came back, then went away after re-enabling the News icon. Rebooting after keeping the News option quelled the issue upon startup.
Both sleep and hibernate re-launch without presenting the issue if the News option was at least enabled at any point before hibernate/sleep.
I also repeated the above steps for the Icon & Text option.
Seems like the solutions to this issue at this point are to either uninstall the KB5003214 update, or keep the New & Interests option enabled.
I would say this is not a high priority (for me), but I would hope to see a fix at some point in the future. I personally prefer to keep that News feed off, and I also try to keep my windows up to date.
Also, it seems like this issue either relates to or duplicates
Missing System Tray Icons,
Graphic glitch since Windows 21H1, and
Taskbar Behaves Stangely (Windows part).