Same problem on three different computers (1x Windows 11 Educaton, 1x Windows 11 Pro, 1x Windows 11 Home). The KB5012643 Cumulative Update breaks safe mode (it was working fine before the update). The screen flickers and a bunch of services aren't loading up. I was able to hit CTRL+ALT+DEL to get to the options to restart the computer, though, and start it normally afterwards. Will uninstall KB5012643 and see if that fixes things.
Update: After uninstalling KB5012643 Safe mode works fine on all systems again.
Also, the "Show or Hide Updates" tool can't seem to see/hide KB5012643 for whatever reason and Windows will try to install the faulty KB5012643 update again. @Microsoft Please pull KB5012643 from distribution ASAP!
How could this buggy update make it through QA and to the release channel anyway?!