Can't mount encrypted disk images after Monterey upgrade
I have some encrypted disk images I've been using since 2007 to store health, financial records, etc.. and I can't open them since I moved to macOS 12. I waited until 12.1 avoid some of these bugs.
I just get a message "The disk image couldn't be opened - The disk image is corrupted" when I click on the .dmg file. I have backups in time machine and backblaze, I can't open the backups either.
I did notice that I can "hdiutil attach <path to dmg>" in Terminal - and it prompts me for the password, mounts the DMG and then I can access everything normally via Finder. So I don't believe the disk images are corrupt. This same issue is happening to several encrypted disk images I have.
Any ideas what the problem is? This is only similar post I found: https://discussions.apple.com/thread/253490294
Mac mini, macOS 12.1