Do you have the IPFS client running with the browser? Do disable it for experiment.
Also, if you have IFPS companion extension, also disable it for experiment.
To solve the problem, you may use IPFS local node directly from settings brave://settings/ipfs rather than from brave://ipfs-internals/
I have no other IPFS applications running and have disabled the IPFS companion extension as well. The IPFS page in brave settings is all defaults as well except the option to use IPFs companion.