Dear maintainer: Upstream Caja ticket for this issue is here: https://github.com/mate-desktop/caja/issues/1583
Upstream developers have root-caused the issue as backwards incompatibility between newer versions of the compiled Pango libraries and older versions of the Pango headers. If Caja is built against the older headers and then run with the latest Pango .so libraries, we get this hyphenation behavior. To test this, I grabbed the sources to Caja 1.24.0, exactly matching the version currently in Bullseye, and rebuilt them myself. Lo and behold, the hyphenation behavior disappears. So to resolve this issue in Bullseye, all that's needed is to rebuild the package & version bump, with no other changes required. Regards, -Max