AI noise reduction adding a square noise pattern on CCD cameras

Camera Raw version: 16.0.1 (also in older versions)
SO version: Windows 11 23H2

To reproduce this issue and make it more obvious, do the following:
- Open the RAW file attached
- Rise sharpening to 70+
- Open the AI noise reduction dialog and lower the ammount to the minimum

Expected result: There should be more or less of the original noise depending on the ammount setting.
Actual result: Noise reduction introduces a new artificial pixel pattern noise in the image, specially when the ammount of noise reduction set is low

Please find here a RAW file for testing (gives and error when trying to upload here) and 2 screenshots showing the before and after applying the noise reduction.
Without noise reduction (mouse button clicked):

With noise reduction: