Hi, @watchpocket 
I've done a web search for the following error message that appears in your .xsession_errors log that you rightly included in your post:
RuntimeError: object at 0x7fd86c97dbc0 of type FolderColorMenu is not initialized
... and I've found the following discussion, also here in the Ubuntu MATE Community discussion forums, started by @tkn (thom), almost a year ago (in July 2022):
In that discussion, @thom ended up finding out that installing the package named folder-color solved the issue for him. You may also read the following related Bug report that he created in Launchpad, on 8 July 2022:
In that Bug report discussion, while trying to fetch "apport" information for the bug report, he found out that installing the folder-color package solved the issue related to the "FolderColorMenu is not initialized" error message:
So, @watchpocket , I suggest that you try to install the folder-color package and see if that also solves the issue for you, by running the following command:
sudo apt install folder-color
I hope this helps