Files unable to be unhidden when using latest MacOS with M2 chip

Last week I upgraded my laptop to the latest macbook air with M2 silicon chip plus the Ventura 13.4.1 MAC OS.

On doing this I started having problems with many new files being hidden in the vault…

But I cannot unhide the files…… unless I copy the files to my hard drive… in which case they reappear.

Can you please advise what the workaround is?

Is it possible that your vault is located in iCloud Drive? In that case, your vault has to be available offline. Press the cloud icon next to the vault in iCloud Drive in order to trigger the download.