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I grabbed my Deck to check, and experienced the same thing.
There's also an open issue on github for this exact problem, dated five days ago.[github.com]
Not sure when this problem appeared but it's been this way for at least a week now and I assume way, waaay longer since I haven't been using the functionality for at least a year.
Sorry had to use every sad emoji in my arsenal. maybe Steam staff will take pity on us then. After a year....
It won't ever be fixed. It turns out that it all hinges on a single individual file which isn't backed up anywhere either locally or in your cloud, and that can become corrupt if at any point the system is unexpectedly shut down while something is being written to that file. Or for other reasons, I presume.
That's bad design in my opinion, and the only way you can shield yourself from that is to back up this file periodically
/Steam/userdata/USER_ID_NUMBER/config/shortcuts.vdf