Actual results
Audacity completely freezes and becomes completely unresponsive to all button touches, both on the mouse and keyboard.
If you right-click on the taskbar → close, a popup shows up saying “would you like to save?” but it’s not possible to click anything in the dialog.
How much internal drive space do you have in numbers (not opinions)? Are you using a cloud drive, network drives, or external drives?
Have you ever done a Windows clean shutdown? Shift+Shutdown > OK > Wait.
Not regular Shutdown and not Restart.
This is the kind of craziness you can get when the machine runs out of resources. When you do an edit, Audacity tries to make a perfect copy of The Whole Show. If there is no room to do that, you might get what you have.
I know this is insanely frustrating, but don’t automatically assume odd Audacity behavior is a bug. Audacity 3.5 has its share of actual bugs, bad behavior experienced by many people on many different machines. But I don’t think that’s what this is.