It neither works with just those 2 chosen for example.
I’ve tried it in Cubase 11.0.41 and it works fine. I’m not taking it as a solution though.
The solution (on Windows) is:
Go to:
- AppData > Roaming > Steinberg.
- Cut and paste the folder name “Cubase 12_64” somewhere else.
- Launch Cubase 12.
- After launch, preferences of Cubase 11.0.41 will be transferred to Cubase 12_64.
Safe Mode, which disables preferences, does not work. Removal of the whole folder does.
Thanks to everyone who helped, I appreciate your time!
Happy 2023!
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Hi,
OK, so the preferences were corrupted.
This one just removes (renames) the defaults.xml file. Some settings is stored in other preferences files.
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Yes, add this solution to your support list!
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Oops! I should have kept track of this a little better. Sorry about that!
Thanks for everybody chiming in.
Looking into this now! 
Actually the preferences weren’t corrupted. I have experienced exactly this 5 minutes ago. The solution without having to trash prefs is to go in the naming option, select default. Then add to queue. Once added to queue delete what’s in the queue and go back into naming option. Remove everything you don’t want to be in the names (in my case I only wanted track name just like OP), go back you Queue output and voila, your multiple files will work. This was annoying me but its actually very simple to get it working if it happens. 
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