This is caused by Microsoft.SharePoint.Client.dll installed in the Global Assembly Cache from an older version of module.
To resolve the issue,
(1) Navigate to C:\Windows\Microsoft.NET\assembly\GAC_MSIL
(2) Remove the Microsoft.SharePoint.* assemblies
(3) Uninstall the module with Uninstall-Module -Name Microsoft.Online.SharePoint.PowerShell
After reinstalling the module from the PowerShell gallery, the module worked flawlessly.
Can't import SharePoint online Powershell module
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