Mike,
I'm wondering if this has something to do with Paint3D. The shell seems to be enumerating the program's registry location, and Paint3D's Package ID is wrongly assigned; it's pointing to the regular Paint app.
Please try these two commands from Admin PowerShell window:
- get-appxpackage *paint* -allusers | remove-appxpackage
- get-appxpackage Microsoft.Windows.Photos -allusers | remove-appxpackage
Install Paint 3D from Microsoft Store.
(Don't install the Photos app yet.)
See if the erroneous Open With entry is gone. Let's know how it goes.