So since it works in a new user account but not the old one, it's likely to be something in ~/Library more than any of the standard software. Two ideas:
First, startup the machine in safe mode, login to the user account with the issue, and see if it happens. Safe mode is tricky to get into on the M1 machines, follow the support doc steps very closely. If it works, that means it's probably some kind of code that's interfering.
If it still doesn't work, there's a brute force step you can try. First, I strongly recommend making a reliable back (i.e. a full clone with carbon copy cloner), just so you can undo this if it messes something up.
Boot in normal mode, then in ~/Library, move the entire preferences folder to the desktop. Reboot, and log back in and see if it happens. If if then works, you know it's a preference file of some kind. Move the preferences folder back, and then start moving pieces out until you discover what the issue was (you many need to reboot in between - I'd suggest moving in in halves, then halve that chunk into quarters, until you zero in on it).
I had to do something similar to solve an issue on one machine where the menu's would disappear after clicking (in all apps). Never did zero in on the culprit, but it was in the preferences folder. In that case, the machine had been migrated continuously since 10.3, so it was some ancient gunk that interacted in odd ways with ventura.
I know it's brute force, but it's the best i've got.