New
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You could always try Open Shell, I've used it on 10 & 11 & it looks/works great.
GitHub - Open-Shell/Open-Shell-Menu: Classic Shell Reborn.
This is what mine looks like on Win 11. Much better then default 11.
For all their so-called smarts, Microsoft employees make some really stupid decisions. It's these types of decisions that make me hate Windows Updates.
bro67: Do you know which update, perhaps it can be uninstalled.
Borg 386: I've thought about using Open Shell in the past, perhaps now is a good time to try it out.
This gets rid of the System labels (for now at least):
KB5032190 Windows 11 Cumulative Update Build 22621.2715 (22H2) and 22631.2715 (23H2) | Page 3 | Windows 11 Forum
Works in Windows 10 as well.
Use at your own risk and I'm sure you will need to repeat this every month because no doubt "System" will keep coming back again and again with the monthly cumulative updates.