Windows client erratic behavior with selective sync of a large Dropbox account

Application Affected
Dropbox 
Device
Lenovo Thinkpad
Operating System/Browser (if using the web)
Windows 11 24H2 / 2600
Dropbox App Version (if using the app)
Windows Client 237.4.5655

Question or Issue
Hello,

I wonder if anyone else had a similar problem. I'm under Windows 11. After a recent upgrade to build 237.4.5655, the Dropbox client started behaving very erratically. I have ~3TB and >500,000 files in my Dropbox and actively use selective sync and online files (by default the new files are to be online).

At some point, the client lost all the selective sync settings, tried to download everything, filled up my disc and stopped. I tried to unselect some folders, but couldn't get the client into a stable state -- it kept freezing in a "downloading N files" or "syncing" state indetinitely.

I then completely uninstalled the client, deleted the local folder, reinstalled the client and tried to sync anew. I started with a minimum set of selected folders, then added them one by one and  requested to make some of them available offline. I observed various problems, like (1) integration with Windows Shell / file system stopped working; (2) the client froze in an endless "Syncing", "Indexing N files", "Downloading N files" state. Sometimes the client was responsive and I could quit it, sometimes it was not and I had to kill it usingTask Manager. Quitting and restartnig the client helped a few times, but after a few attempts to select new folders or change online/offline status the problems appeared again.

Womdering if downgrading to an earlier stable build may help. Any other suggestions will be much appreciated.