The OP stated that their files are NOT set to hidden.
The solution provided by Olivia does NOT work.
Doing a System Restore to a time before this issue occurred also does NOT work. Now, after restoring my system, I cannot even see the Options window to attempt to reset my folders!
This is one of those "suddenly this problem" issues repeatedly occurs with Windows 11 that no one has a solution for and users are inconvenienced until someone finds the problem and pretends it didn't exist as you get the next Windows Update.
I may have to roll my computer back to Windows 10 and hope for the best because every few days, I have another annoyance pop up with Windows 11.