Through this video, I was able to find and fix this issue perfectly.
In short, type "cleanmgr" in search bar.
Press OK while drive C is selected.
Uncheck all checkboxes except "Thumbnails".
Press OK.
It will ask you to delete files "Are you sure you want to permanently delete these files", clicking OK will start deleting them all, then simply REFRESH your screen and it should be fixed!
For me, this solution worked 100% - situation may vary depending upon your windows 11 or its version. If this happens, then keep finding solutions until it is fixed for you then share with me in the comments below so others can find it useful too.