Cannot create new world

I am unable to create new worlds in Minecraft. 

I click on the green create world button and nothing happens. 

I was encourage to submit a report here after contact with the Minecraft help. (Reference 6931281 - Game Performance). I attach a video below. 

This has been the case for a few months now. I first noticed it in 1.21.44. I had hoped the recent update 1.21.50 /1.21.51 might fix it but it has not.

This may be related to the following bug:

MCPE-185261

but I was encouraged to report it again because it is a different platform. 

I have tried unselecting multiplayer options.
I have tried deleting some saved worlds.
Other offline profiles on the same PS5 do not have this issue.

Suggestions from Minecraft helpdesk that I have also tried but did not resolve the issue:

Ensure I'm using the most recent version of Minecraft

Restore licences

Clear cache and rebuild database