The recovery loop forcing is most likely related to the installation of DAQmx and other NI driver software that make under the hood use of NI-PAL and friends which is really part of the NI-PXI driver software stack. This driver goes fairly deep into the Windows PCI hardware driver stack and newer Windows versions tend to enable the newest features in the PCI chipsets. Some of these features did not even exist in the standard when DAQmx and NI-PAL that come with the standard install of LabVIEW 2020 were released.
So if you want to install an older version of LabVIEW on a recent hardware, it is actually best to choose a custom install and disable installation of all hardware drivers and then install the latest version of the drivers you actually need that are still compatible with your LabVIEW version. That's of course cumbersome and the long term solution is indeed to move to a newer LabVIEW version altogether. But be aware that this problem will keep occurring. The times where hardware improvements were automatically always fully backwards compatible are definitely over. The PCI standard got so complicated over the years, and covers much more than just the traditional PCI slots that are almost unseen in modern computers. Pretty much every modern bus from USB3 and higher to Thunderbolt, all kinds of memory interfaces, and many more is nowadays using PCI technologies in one way or the other. Improving that without causing potential backwards compatibility problems got an almost impossible task. And each of the software component manufacturers from hardware firmware, to BIOS and chipset firmware to Windows drivers and vendor drivers such as NI-PAL would need to test their thing with everything else to be sure it still works. Which of course is impossible, so you end up with these issues.
For LabVIEW itself I managed to install and use LabVIEW 2009 on Windows 11 without any real problems. I'm convinced that even LabVIEW 7.1 would be possible, although that most likely would require some careful hand holding and sweet talking to the installer to convince it to go fully through with it. And it might show some visual artefacts when running it under Windows 11. Hardware drivers on the other hand are a different story. The NI drivers go fairly deep into the system to allow high performance data acquisition and similar things and that has a big potential to run into compatibility trouble on newer hardware than what was available at the release date of the driver.