+xI was eventually able to fix it, but it required a bit of work.
I restored down a version of Windows 11 21H2 and its WINRETOOLS partition that was the version associated with 21H2. I then ATTEMPTED to update it to 22H2, but 2 attempts in a row fixed the WINRETOOLS issue but BROKE Windows Update in 2 different ways. However, the 22H2 update did create a 2nd WINRETOOLS partition along with my old 21H2 one. I then restored my morning backup back to 22H2 and attempted to build new Rescue Media. The new Rescue Media was 22621.
So, I'm just going to keep that old WINRETOOLS partition in place now that I've got something that works and just back it up along with the new WINRETOOLS partition.
I am struggling to see what the issue is. I am on 22H2, and my winre is 22621.

Why do you want to keep the old winre partition? It is only used in context of Macrium Reflect to create a usb drive/iso and new one works on older installs.
You can tidy up things as well as follows:-
If you type following in admin command prompt, it will move the current winre.win file from recovery partition and park it on C drive.
reagentc /disable
Then you can delete one of the recovery partitions and run the reagentc command with setrimage
REAGENTC.EXE /setreimage /path r:\Recovery\WindowsRE
You have to temporarily assign recovery partition a drive letter using diskpart or tool like minitool. Yiu may need to create the folder structure as well.
Then run
reagentc /enable
This moves winre.wim back to the assigned recovery partition.
Then if you check, it should say it is enabled and which partition is in use (don't forget the hidden 16 mb msr partition - below shows recovery the recovery partition as 3rd but there is a hidden partition - Reflect shows it though)
reagentc /info



In fact, the recovery partitions are not needed if not using bitlocker, as the enable parameter will put the winre.wim on C:\recovery folder.