Thanks for the reports sharicov.
I have trouble reproducing them, It could be that the FormatEx API has a problem with some characters of the drive label.
Could you try the same on command line with a simple label:
WinNTSetup_x64.exe VHD-CREATE -file:"X:\full_path_to_VHD.vhd" -size:20GB -type:expandable -label:"VHD"
The other problem could occur with a inaccessible device, if so it will be fixed with next version.
@Antonino Dunno, I was under the impression that I had fixed all Win11 explorer issues.