I was in the middle of debugging an emacs problem, and ran into this today. I'm on Windows 11, runing gpg (GnuPG) 2.4.5 from msys64. The problem is that --homedir c:/foo/bar is treated as a relative path, as evidenced here:
% pwd /c/Users/me/.config/emacs % gpg --no-tty --status-fd 1 --yes --homedir c:/Users/me/.config/emacs/elpa/gnupg --command-fd 0 --import -- c:/emacs/emacs/share/emacs/30.0.50/etc/package-keyring.gpg gpg: keyblock resource '/c/Users/me/.config/emacs/c:/Users/me/.config/emacs/elpa/gnupg/pubring.kbx': No such file or directory
As you can see from the last line, it's prepending my cwd to the --homedir arg. Since that begins with a drive letter, I think gnupg/gpg should treat it as absolute.
If I replace that path with --homedir /c/Users/me/... then it works OK.
I tested this in a msys2 shell and also in Powershell; the failure is the same in both cases.