Thank you for reporting a bug to Unity.
After reviewing the behavior, we've confirmed it aligns with the current design and intended use of the feature. We understand this may differ from your expectations or workflow.
The project contained a corrupted ProjectSettings file that caused the editor to crash. Once you delete the invalid ProjectSettings file, the editor will launch correctly. However, it seems like the Unity project was generated with an LLM which should not be done. Initializing a project through Unity Hub will almost always be more reliable.
We will close this case as 'As Designed.' If you have feedback on how the feature could better meet your needs, please let us know - we value your input and consider it in future improvements.