My guess is that it's created in a version newer than the LTS and something in the format has changed (I'm always on the latest version to find and fix issues with new features breaking my engines ASAP).
I know the new project loader was introduced recently-ish (version 2023.6, if memory serves) so potentially that's the issue, though the new format was made to be backwards-compatible so you'd think LTS could handle it... but it's almost a year old now so it might be lagging behind a bit...?
I asked around a bit and it sounds like you can have an LTS version and a regular version installed at the same time (as long as they're installed in different locations) so that could be a solution - having bleeding-edge for this engine and LTS for your other projects. (And having a beta and a regular version installed at the same time 100% definitely works)