P: .psb file thumbnails display improperly in MacOS Monterey

For me, large file format thumbnails (.psb) do not display correctly. I'm running Photoshop version 23.2.1, MacOS Monterey 12.2.1 and have had this problem for several months. An Adobe help tech played with permissions and other solutions today but couldn't fix it. The .psb files display ok at smaller sizes but at larger sizes they display a colorblock full of noise like you'd see on a television screen. While pretty, it's very frustrating to work with because I can't tell which version of the project to click on. Help!!

Normal .psd file thumbnails work fine, as do all other thumbnails on the computer. Things I have tried: resaving the files with the most recent version of Photoshop after updating to 23.2.1. Moving the files to another folder that's on the desktop, not in Dropbox, etc. Some file permissions changes. Restarting. Toggling on and off different display types from list to icon. These files were not created on an external drive, but locally. Saving as a new file with a new name doesn't help.

How the problem manifests: I enlarge the thumbnails in MacOS by dragging the thumbnail size slider to the right. At some point the .psb files switch to weird colorful versions while the rest (.jpg, .psd) continue to resize all the way up to the largest possible display.