After ios 16.x->17.1, Notes sometimes opens a window with a folder list and can't close it without killing Notes

On 17.1, while I'm typing in a note, sometimes a list of folders opens in a window on top of the note. There's no X to close the window. Selecting one of the folders highlights the folder but does nothing else. Taping on the note being edited does not close it. Exiting the note does not close it. Closing Notes does not close it - it's there when I reopen. If I kill the Notes App, it is gone when I restart. I have multiple folders and multiple notes in each folder. The note I was editing is long, but I was not seeing this issue on IOS 16.(5.4?).

Is there some new 17.1 functionality that I'm accidentally activating and is there a way to close this window? Or is this a bug? I don't have apple care on this iphone 11, so I can't contact support. I could send feedback for a bug, but was trying to tell if this is just something new in IOS17 that I'm mismanaging.