Thanks for your reply... I have not got Dropbox. OneDrive was not loaded.
I spent nearly 2 hours with Apple Support including second level engineering. We may have identified the problem?
I use a Cloud Service provider called pCloud with servers in USA and EU. pCloud is an excellent, provider of web based Cloud Services with very high security levels, I am a long term, happy user. However, they have an app called "pCloud Drive" that tries to provide a "virtual" Finder Folder and a Desktop "Drive".
The pCloud Drive app is dependent on a third party utility called "macFUSE". Apple allows this to be integrated with Ventura. macFUSE allows you to extend macOS’s native file handling capabilities via third-party file systems like pCloud.
(Dropbox, OneDrive, etc. also have Finder virtual drive integration apps - I do not use these, but other users may get Red Circle issues?)
Unfortunately; my experiences showed that pCloud Drive had significant Ventura integration problems for some time. I had big issues and removed the early versions (all reported to pCloud Support). The latest pCloud Ventura version seemed to have resolved the problems until "Red Circles" appeared.
I am confident that pCloud will resolve things, but for the time being; I removed pCloud Drive and my Red Circles are gone (I hope it is soon fixed).
Hope this helps.