My laptop is Win11 Home 22H2 with LongPathsEnabled set to 1.
I tested with this Powershell script.
cd \
$LongFolderPath = "c:\TEMP\" + ("A" * 50) + "\" + ("B" * 50) + "\" + ("C" * 50) + "\" + ("D" * 50) + "\" + ("E" * 50)
$LongFolderPath.Length
New-Item $LongFolderPath -ItemType Directory
cd $LongFolderPath
"This text file is in a long folder name." | out-file Long.txt
dir
notepad.exe
cd ..
notepad.exe
explorer "c:\TEMP\"
I see that PS is able to create the long folder name and the long.txt file. The folder name length is 262 characters.
But if I try to launch a program from the long directory, I get a "The directory name is invalid" error. If I "cd .." up to a shorter name, then it works.
I see that explorer is able to navigate the long folder name. And when it gets to the long name it switches from "C:" to the DOS device path syntax "\?\c:" on the tab.
https://blogs.msdn.microsoft.com/jeremykuhne/2016/04/21/path-format-overview/
Notepad is able to see the long folder names in the File/Open dialog.
As you experienced, I too get the "Destination Path Too Long" error when I try to use explorer to create a subfolder.
See the comment "Win32 Long Paths GPO Not Working on Windows 10 File Explorer" in this link.
https://theitbros.com/destination-path-too-long-error-when-movingcopying-a-file/
But I was able to create additional subfolders under 'EEEEEE' using Powershell. Explorer was able to see these folders and notepad was able to edit a text file in them.
It would appear that long file name support is still a "work in process" in Windows. Most likely to provide backward combability and not break anything. There are several requests on the Feedback Hub to fix it. Like this.
If you don't want to use Powershell to create long folder names, you could try 3rd party explorer solutions.
https://superuser.com/questions/320801/alternative-to-windows-explorer-for-long-path-names
That's still not going to help you if the application (like Excel) that is used to process the file does not support long names.
The simplest solution appears to be to just use shorter folder names.