Adobe Media Encoder fails to overwrite existing file

When "increment output file name if file with same same" is unchecked, and the target file exists, encoding fails. File is not set to read only, and has no unusual permissions.  No process has an open handle to the file.

23.5 build 51

Windows 11

 - Source File: D:\test content\source.mp4
 - Output File: D:\test content\source_1.mov
 - Preset Used: d3region0_proxy0
 - Video: 3840x2160, no alpha, 29.97 fps, 00:00:47:06
 - Audio: Uncompressed, 44100 Hz, Stereo, 16bit
 - Bitrate: 
 - Encoding Time: 00:00:00
07/31/2023 03:08:41 PM : Encoding Failed
------------------------------------------------------------

Encode failed because the file D:\test content\source_1.mov can't be overwritten.