Hello,
I've cleared the caches and removed all the website data (same as cookies) and the issue still occurs.
Regarding the two questions,
I have tried reproducing this issue on the newest version, v3.2.21-2.1.3. This issue still occurs.
As I have mentioned, I have tried to startup my Mac with safe boot, which means no software (except the system required), will be launched in start-up. Therefore, I didn't use any VPN or the imcompatible software mentioned.
In /Applications, double click Minecraft.app, or launch Minecraft application through Launchpad or Dock.
Press the "MICROSOFT LOGIN" button.
A window will pops out and the issue happens.
I found an issue which describes the same bug.
MCL-24681
Hope the above report can provide more information.