An update regarding the "DeserialiazationVersion1 failed with unhandled exception...SafeSerialization...EnhancedBinaryReader Deserialization" issue, paraphrasing a Microsoft Premiere Support Engineer: there are three options:
1) remove/rewrite the code that uses FormState especially if the type is String or List. [Not possible in my case]
2) downgrade server patches/CUs to DEC 2020! Lock the server down.
3) Install fresh SharePoint server, and upgrade to DEC 2020 patch. Lock the server down.
We elected option 3 (thanks L!) and the issue was resolved.
Key take away is this is not a Developer issue this is a Server-side validation issue that was introduced in the MAR 2021 security patch due to at least one disclosed/discovered vulnerability. Beyond frustrating Developer Experience. There should be more information about this issue but I guess not many companies are running InfoPath with code behind as much any more. This issue cost the company $xxx,xxx dollars in Engineering, Developer, Security Team, Infra team, C-level, etc. time and effort to "resolve". The Microsoft Engineer did state that Microsoft is aware of the issue and that developers are working on remediating the issue but that an ETA is unknown at this time.