After SEVERAL hours back & forth with apple support & multiple escalations we figured out a solution.
Booted in safe mode > created a test user > logged in to test user > checked to see if error was still happening under test user. It was not.
SO logged back in to my user > System Settings > General > login items > removed ALL programs from open at login.
That fixed it.
I'm 100% sure the problem started/was occurring because of dropbox. I initially had issues with Dropbox not syncing after the first Sonoma update. Couple of hours with dropbox support & we got that figured out. But it involved uninstalling/unlinking my account then doing a fresh install.
There was a whole other issue that came up w/ documents/downloads/desktop disappearing. My suggestion, be very mindful about using dropbox & Sonoma for a while.