'Recent Places' when saving or selecting a file does not work.

I'm having an issue that when I go to save a file (in any application) or select a file (such as a file upload window that pops up to browse for it through the Finder) the 'Recent Places' shortcut drop down list does not function correctly - it lists my recent folders correctly, however when I click on any of them it immediately takes me to 'Macintosh HD' and not the actual folder I selected.

This is incredibly annoying as due to my work projects having deep folder paths i'm having to manually retrace my steps every single time I save something. It's adding a considerable amount of time & clicks to what would otherwise be a single click and save process (as I have to click on Desktop in my Finder and navigated from there rather than simply using the shortcut in the Recent Places dropdown)

I'm on a 2022 Mac Studio, I was running Ventura when this problem started. I restarted a few times with no effect, and then updated to Sonoma but the problem still persists.

Example drop down when I go to save or browse for a file. Folder names are correct and all exist (and are in fact the most recent)

However, once any recent place shortcut is clicked it takes me here: