Sorry for yet another post, but I believe I looked through all and cannot find the solution.
Here's the snap from the PowerShell.
I turned off all Windows Security features without luck.
PS C:\Program Files\Arduino IDE> & "./Arduino IDE"
PS C:\Program Files\Arduino IDE>
Arduino IDE 2.3.3
Checking for frontend application configuration customizations. Module path: C:\Program Files\Arduino IDE\resources\app\lib\backend\electron-main.js, destination 'package.json': C:\Program Files\Arduino IDE\resources\app\package.json
Setting 'theia.frontend.config.appVersion' application configuration value to: "2.3.3" (type of string)
Setting 'theia.frontend.config.cliVersion' application configuration value to: "1.0.4" (type of string)
Setting 'theia.frontend.config.buildDate' application configuration value to: "2024-09-25T09:41:18.242Z" (type of string)
Frontend application configuration after modifications: {"applicationName":"Arduino IDE","defaultTheme":{"light":"arduino-theme","dark":"arduino-theme-dark"},"defaultIconTheme":"none","electron":{"windowOptions":{}},"defaultLocale":"","validatePreferencesSchema":false,"preferences":{"window.title":"${rootName}${activeEditorShort}${appName}","files.autoSave":"afterDelay","editor.minimap.enabled":false,"editor.tabSize":2,"editor.scrollBeyondLastLine":false,"editor.quickSuggestions":{"other":false,"comments":false,"strings":false},"editor.maxTokenizationLineLength":500,"editor.bracketPairColorization.enabled":false,"breadcrumbs.enabled":false,"workbench.tree.renderIndentGuides":"none","explorer.compactFolders":false},"appVersion":"2.3.3","cliVersion":"1.0.4","buildDate":"2024-09-25T09:41:18.242Z"}
Starting backend process. PID: 2252
Using browser-only version of superagent in non-browser environment
Configuration directory URI: 'file:///c%3A/Users/oleks/.arduinoIDE'
Configuring to accept webviews on '^.+\.webview\..+$' hostname.
2024-10-12T00:07:29.820Z root INFO Backend Object.initialize: 7.2 ms [Finished 0.769 s after backend start]
2024-10-12T00:07:29.824Z root INFO Backend Object.configure: 6.8 ms [Finished 0.769 s after backend start]
2024-10-12T00:07:29.825Z root INFO Backend a.onStart: 2.4 ms [Finished 0.769 s after backend start]
2024-10-12T00:07:29.826Z root INFO Backend a.configure: 0.4 ms [Finished 0.800 s after backend start]
2024-10-12T00:07:29.827Z root INFO Backend d.onStart: 0.2 ms [Finished 0.800 s after backend start]
2024-10-12T00:07:29.828Z root INFO Backend d.configure: 0.1 ms [Finished 0.801 s after backend start]
2024-10-12T00:07:29.829Z root INFO Backend d.initialize: 31.1 ms [Finished 0.801 s after backend start]
2024-10-12T00:07:29.829Z root INFO Backend c.onStart: 0.3 ms [Finished 0.801 s after backend start]
2024-10-12T00:07:29.830Z root INFO Backend s.configure: 5.2 ms [Finished 0.806 s after backend start]
2024-10-12T00:07:29.833Z config INFO >>> Initializing CLI configuration...
2024-10-12T00:07:29.833Z root INFO Backend c.initialize: 0.8 ms [Finished 0.807 s after backend start]
2024-10-12T00:07:29.834Z root INFO Backend x.onStart: 1.5 ms [Finished 0.808 s after backend start]
2024-10-12T00:07:29.835Z config INFO Loading CLI configuration from c:\Users\oleks\.arduinoIDE\arduino-cli.yaml...
2024-10-12T00:07:29.836Z daemon INFO Starting daemon from C:\Program Files\Arduino IDE\resources\app\lib\backend\resources\arduino-cli.exe...
2024-10-12T00:07:29.836Z root INFO Backend s.initialize: 0.5 ms [Finished 0.809 s after backend start]
2024-10-12T00:07:29.836Z root INFO Backend w.onStart: 1.6 ms [Finished 0.810 s after backend start]
2024-10-12T00:07:29.836Z root INFO Backend r.configure: 3.0 ms [Finished 0.811 s after backend start]
2024-10-12T00:07:29.836Z discovery-log INFO start
2024-10-12T00:07:29.836Z discovery-log INFO start new deferred
2024-10-12T00:07:29.836Z root INFO Backend d.initialize: 0.6 ms [Finished 0.811 s after backend start]
2024-10-12T00:07:29.836Z root INFO Backend y.onStart: 3.7 ms [Finished 0.815 s after backend start]
2024-10-12T00:07:29.836Z root INFO Backend r.configure: 3.4 ms [Finished 0.815 s after backend start]
2024-10-12T00:07:29.837Z root INFO Backend s.onStart: 1.3 ms [Finished 0.817 s after backend start]
2024-10-12T00:07:29.837Z root INFO Backend h.configure: 1.1 ms [Finished 0.817 s after backend start]
2024-10-12T00:07:29.837Z root INFO Backend a.configure: 0.2 ms [Finished 0.818 s after backend start]
2024-10-12T00:07:29.837Z root INFO Backend l.configure: 0.1 ms [Finished 0.818 s after backend start]
2024-10-12T00:07:29.842Z root INFO Theia app listening on http://127.0.0.1:51317.
2024-10-12T00:07:29.842Z root INFO Finished starting backend application: 5.5 ms [Finished 0.823 s after backend start]
2024-10-12T00:07:29.853Z root WARN The local plugin referenced by local-dir:/c%3A/Users/oleks/.arduinoIDE/plugins does not exist.
2024-10-12T00:07:29.854Z root WARN The local plugin referenced by local-dir:/c%3A/Users/oleks/.arduinoIDE/extensions does not exist.
2024-10-12T00:07:29.854Z root WARN The local plugin referenced by local-dir:C:\Users\oleks\.arduinoIDE\plugins does not exist.
2024-10-12T00:07:29.877Z config INFO Loaded CLI configuration: {"board_manager":{"additional_urls":[]}}
2024-10-12T00:07:29.877Z config INFO Loading fallback CLI configuration to get 'directories.data' and 'directories.user'
2024-10-12T00:07:29.925Z root INFO Resolve plugins list: 90.2 ms [Finished 0.905 s after backend start]
2024-10-12T00:07:30.001Z daemon INFO time="2024-10-11T17:07:30-07:00" level=info msg="arduino-cli version 1.0.4"
2024-10-12T00:07:30.022Z daemon INFO time="2024-10-11T17:07:30-07:00" level=info msg="Using config file: c:\\Users\\oleks\\.arduinoIDE\\arduino-cli.yaml"
time="2024-10-11T17:07:30-07:00" level=info msg="Executing `arduino-cli daemon`"
Daemon is now listening on 127.0.0.1:51318
{"IP":"127.0.0.1","Port":"51318"}
2024-10-12T00:07:30.023Z daemon INFO Daemon is running.
2024-10-12T00:07:30.092Z config INFO Loaded fallback CLI configuration: {"directories":{"user":"C:\\Users\\oleks\\OneDrive\\Documents\\Arduino","data":"C:\\Users\\oleks\\AppData\\Local\\Arduino15"}}
2024-10-12T00:07:30.092Z config INFO Merged CLI configuration with the fallback: {"directories":{"user":"C:\\Users\\oleks\\OneDrive\\Documents\\Arduino","data":"C:\\Users\\oleks\\AppData\\Local\\Arduino15"},"board_manager":{"additional_urls":[]}}
2024-10-12T00:07:30.092Z config INFO Loaded the CLI configuration.
2024-10-12T00:07:30.093Z config INFO Mapped the CLI configuration: {"dataDirUri":"file:///c%3A/Users/oleks/AppData/Local/Arduino15","sketchDirUri":"file:///c%3A/Users/oleks/OneDrive/Documents/Arduino","additionalUrls":[],"network":"none","locale":"en"}
2024-10-12T00:07:30.093Z config INFO Validating the CLI configuration...
2024-10-12T00:07:30.093Z config INFO The CLI config is valid.
2024-10-12T00:07:30.093Z config INFO <<< Initialized the CLI configuration.
2024-10-12T00:07:30.172Z daemon INFO time="2024-10-11T17:07:30-07:00" level=info msg="Checking signature" index="C:\\Users\\oleks\\AppData\\Local\\Arduino15\\package_index.json" signatureFile="C:\\Users\\oleks\\AppData\\Local\\Arduino15\\package_index.json.sig" trusted=true
time="2024-10-11T17:07:30-07:00" level=info msg="Loading hardware from: C:\\Users\\oleks\\AppData\\Local\\Arduino15\\packages"
time="2024-10-11T17:07:30-07:00" level=info msg="Loading package builtin from: C:\\Users\\oleks\\AppData\\Local\\Arduino15\\packages\\builtin"
time="2024-10-11T17:07:30-07:00" level=info msg="Checking existence of 'tools' path: C:\\Users\\oleks\\AppData\\Local\\Arduino15\\packages\\builtin\\tools"
time="2024-10-11T17:07:30-07:00" level=info msg="Loading tools from dir: C:\\Users\\oleks\\AppData\\Local\\Arduino15\\packages\\builtin\\tools"
time="2024-10-11T17:07:30-07:00" level=info msg="Loaded tool" tool="builtin:ctags@5.8-arduino11"
time="2024-10-11T17:07:30-07:00" level=info msg="Loaded tool" tool="builtin:dfu-discovery@0.1.2"
time="2024-10-11T17:07:30-07:00" level=info msg="Loaded tool" tool="builtin:mdns-discovery@1.0.9"
time="2024-10-11T17:07:30-07:00" level=info msg="Loaded tool" tool="builtin:serial-discovery@1.4.1"
time="2024-10-11T17:07:30-07:00" level=info msg="Loaded tool" tool="builtin:serial-monitor@0.14.1"
2024-10-12T00:07:30.202Z daemon INFO time="2024-10-11T17:07:30-07:00" level=info msg="Loading libraries index file" index="C:\\Users\\oleks\\AppData\\Local\\Arduino15\\library_index.json"
2024-10-12T00:07:30.650Z daemon INFO time="2024-10-11T17:07:30-07:00" level=info msg="Adding libraries dir" dir="C:\\Users\\oleks\\AppData\\Local\\Arduino15\\libraries" isSingleLibrary=false location=ide
time="2024-10-11T17:07:30-07:00" level=info msg="Adding libraries dir" dir="C:\\Users\\oleks\\OneDrive\\Documents\\Arduino\\libraries" isSingleLibrary=false location=user
2024-10-12T00:07:30.658Z discovery-log INFO start resolved watching
2024-10-12T00:07:31.318Z root INFO Deploy plugins list: 90.2 ms [Finished 2.299 s after backend start]
Opening channel for service path '/services/electron-window'.
Opening channel for service path '/services/ide-updater'.