Edge 120+ can't be started with selenium outside the typical installation location

When starting edge webtests with selenium, edge does not respond to the selenium webdriver. This only occurs when edge is started from outside the typical installation directory in .../ProgramFiles/.... When edge is started from the typical installation directory, everything runs fine.

Tested with edge v121 as well as 120 at one point, suggesting a break at v120.

Reproduction: https://github.com/Frazerus/TestIt/tree/bugreport_edge_v121