What version of Hugo are you using (hugo version)?
hugo v0.86.0-41C6C52E+extended darwin/amd64 BuildDate=2021-07-21T09:53:14Z VendorInfo=gohugoio
Does this issue reproduce with the latest release?
Yes but not on 85.0, might have something to do with cascade in config.
I'm leaving this here, if this message does not speak by itself, I'll try and share more and reproduce the error on a simple project (it's currently happening on a rather complex one).
A simple  {{ with site.Menus }} is currently triggering this.