Solution
This issue is predominantly seen when the PATH environment variable and its subdirectories are added as search directories in the Search Directories configuration. However, it can also occur by adding a folder that includes a large number of files and subdirectories.

If TestStand can still open, you can deselect those folders to improve the loading time. You may also consider navigating to
C:\ProgramData\National Instruments\TestStand 2021 (64-bit)\Cfg
or
C:\ProgramData\National Instruments\TestStand 2021 (32-bit)\Cfg
, depending on the TestStand bitness, and removing the
SearchDirectories.cfg
file before relaunching TestStand to fix the issue.