File Dialog no longer opening (except for Admin User)

Recently after a windows update, I can no longer open any File / Folder Dialogs. So clicking on File->Open in any application does not work.

However when launching applications as Admin, the File Dialogs works fine. So it appears that some kind of permission got screwed up for non-admin users.

An easy way to test this in Power Shell is the following script:

Add-Type -AssemblyName System.Windows.Forms
$FileBrowser = New-Object System.Windows.Forms.OpenFileDialog -Property @{ InitialDirectory = [Environment]::GetFolderPath('Desktop') }
$null = $FileBrowser.ShowDialog()

This results in the following error:

Exception calling "ShowDialog" with "0" argument(s): "Retrieving the COM class factory for component with CLSID {DC1C5A9C-E88A-4DDE-A5A1-60F82A20AEF7} failed due to the following error: 8007045a A dynamic link
library (DLL) initialization routine failed. (Exception from HRESULT: 0x8007045A)."
At line:1 char:1
+ $null = $FileBrowser.ShowDialog()
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : NotSpecified: (:) [], MethodInvocationException
    + FullyQualifiedErrorId : FileLoadException