I've encountered a bug with the Action/Notification Center when auto-hide taskbar is enabled in the taskbar settings on Windows 11. I've posted some screenshots below. Once I disable auto-hiding, the bug no longer occurs. Hopefully since I've found the exact cause of the bug, this will help the developer fix it. Unfortunately I have a QD-OLED monitor so auto-hiding the taskbar is essential to prevent any burn-in issues with my display.
With auto-hide taskbar enabled:
With auto-hide taskbar disabled: