Password protected Word file embedded in OneNote asks for password three times

I have a password-protected Word document that I have attached in a OneNote page. I've noticed recently that when I try to open the Word document, it prompts for the password three times before it opens the file.

This is with the desktop version of OneNote and Word, currently at Version 2411.

The issue does not exist if I roll Office back to version 2404 (16.0.17531.20120), and I've been able to replicate the issue on multiple computers so it looks like a problem that was introduced in a recent Office update.

Anyone else experiencing similar?