The comment by Dragon Mc Fly fixed this issue for me.
Dragon Mc Fly • 10 Reputation points Dec 5, 2025, 8:19 AM I had the same problem and the only thing that solved the problem was delete notepad at Computer\HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\App Paths (see: https://www.reddit.com/r/techsupport/comments/143v4gy/cant_launch_notepad_from_the_run_prompt/)
I've had this issue for a while and used multiple AI chatbots to try fixing it. Almost all of them followed the same path of Repair,Reset,Re-Install Notepad and or Windows APP SDK but none of them worked. Only by deleting the registry entries did the problem get solved.
For those interested, I asked CoPilot about the fix and the reply was that the path in the registry is actually a stub that is not meant to be opened directly. It is supposed to be run by another shell/app that loads the Microsoft.UI.Windowing.Core.dll prior to running the exe it points to. It also explained that the entries in that registry section override the defaults that Windows has. So deleting it reverts to those (in this case it uses the notepad.exe located in the Windows folder itself).
Something I think is worth noting, NONE of the apps in the \App Paths entry actually work properly if you type them into the WIN+R dialog box. Some will actually open and appear to run but give errors later. For example, typing firefox gives an error saying The application was unable to start correctly (0xc0000022). Click OK to close the application. But running Firefox from the start menu or taskbar shortcut works fine. Running olk (the new ad supported Outlook MS pushed on everyone) opens the application but asks me to log in to my email, and when I do it then gives an error, but, again, running from start menu works.
I suspect there is either something interfering with the Microsoft.UI.Windowing.Core.dll causing it to miss the calls from the run dialog or something that should be running as a system process is not running or is corrupted.
At least for now we have a workaround.