I have the same problem. macOS 12.3, MBP 16" (2020) Intel, Illustrator 26.1
The mouse is completely "dead". I can’t select anything. Just the Format popup menu works. With tab key and keyboard I can select a folder, but the Save button keep grayed out. The Cancel button doesn’t work. The only way to get out is via esc key.
I have the same problem. macOS 12.3, MBP 16" (2020) Intel, Illustrator 26.1
The mouse is completely "dead". I can’t select anything. Just the Format popup menu works. With tab key and keyboard I can select a folder, but the Save button keep grayed out. The Cancel button doesn’t work. The only way to get out is via esc key.