Upload file window highlights wrong folder in sidebar – is this a UI bug?

Windows 11 25H2 latest stable build. Whenever I click the attach/upload button on any website, the file picker window opens and defaults to the Downloads folder—you can see it in the top path. But in the sidebar, it highlights Desktop instead, which is confusing.

If I click Downloads in the sidebar and then click Desktop again, it shows the correct items and highlights properly from that point on. But initially, it's always misaligned.

Can anyone else replicate this, or is it just me?