Package is duplicating file extension naming twice

Hello!

I ran into something that is creating a little bit of an issue for me and curious if anyone knows what is happening. When I package a file in Illustrator, all of the artwork in the Links folder that gets created end up have double file extensions at the end (ie Photo.psd.psd).

This didn't used to happen and it is quite frustrating.

I'm attaching a screenshot of an example as well. In this instance, it also seems to be duplicating files as well, but none of my original files had double filetypes at the end.

Any thoughts?

I'm on a M1 iMac 24" 2021.

Thanks!