Solution
This is a known issue first reported in LabVIEW 2019. If you have a VI that contains a recursive call to itself on the diagram, and that call site is set to be a Load and Retain dynamic subVI call, you will get a Resolve Load Conflict dialog with File not found as the expected path.
After selecting the first item in the list, the VI opens and is not broken. If you close it and reopen it, the Resolve Load Conflict dialog appears again. Note that the dialog does not appear if you open the VI outside of the project.
A workaround for the issue is to ensure the VI is shared clone reentrant, and replace the dynamic subVI call with a static call.