Hi Nathan,
I'm glad that I'm not going crazy and other people having the same issue. Sadly, like you, I haven't found any answers to why this is happening and how to fix it quickly. However, I found a workaround.
I would like to add a bit more information from my investigation.
As you mentioned, this happens only when the document is saved on SharePoint (not SharePoint 365)
If the file is saved anywhere else (locally, 365 Sharepoint, network storage drives) issue disappears.
I noticed this is a more common problem for users who had different Office packages and were upgraded to Office365 a year ago.
In the end, I found out it was related to the user's profile AppData and probably some cached files stored there causing the issue. I'm not able to find exactly where this is happening as per many attempts to clean removal on Office 365 apps and installation again, this was still happening. Sounds like AppData Microsoft folder is causing this or/and the Edge folder. But not able to find exactly where and what.
So after this, only one thing left to do - recreate the user's profile. And it actually does the job. It fixes the issue as it creates all AppData files correctly and without corruption. It takes time to deal with as you need to make a backup for the old one just in case, but it resolves the main problem.
Done additional testing as well - slowly placing back AppData files. Crashing and hanging came back and as I said, around the Microsoft folder and Edge, something terrible is happening :)