So i ran into the same issue. I have tried everything but nothing works. I am only able to launch the game when there are no mods installed.
Here is my debug log:
[11Aug.2021 11:51:39.144] [main/INFO] [cpw.mods.modlauncher.Launcher/MODLAUNCHER]: ModLauncher running: args [--username, Keylogg, --version, 1.17.1-forge-37.0.29, --gameDir, C:\Users\\AppData\Roaming\.minecraft, --assetsDir, C:\Users\\AppData\Roaming\.minecraft\assets, --assetIndex, 1.17, --uuid, c46b3c5679a146799c4475bd634d7025, --accessToken, ????????, --userType, mojang, --versionType, release, --launchTarget, forgeclient, --fml.forgeVersion, 37.0.29, --fml.mcVersion, 1.17.1, --fml.forgeGroup, net.minecraftforge, --fml.mcpVersion, 20210706.113038]
[11Aug.2021 11:51:39.155] [main/INFO] [cpw.mods.modlauncher.Launcher/MODLAUNCHER]: ModLauncher 9.0.7+91+master.8569cdf starting: java version 16.0.1 by Microsoft
[11Aug.2021 11:51:39.167] [main/DEBUG] [cpw.mods.modlauncher.LaunchServiceHandler/MODLAUNCHER]: Found launch services [fmlclientdev,forgeclient,minecraft,fmlserveruserdev,fmlclient,fmldatauserdev,forgeserverdev,forgeserveruserdev,forgeclientdev,forgeclientuserdev,forgeserver,forgedatadev,fmlserver,fmlclientuserdev,fmlserverdev,forgedatauserdev,testharness]
[11Aug.2021 11:51:39.181] [main/DEBUG] [cpw.mods.modlauncher.NameMappingServiceHandler/MODLAUNCHER]: Found naming services : [srgtomcp]
[11Aug.2021 11:51:39.190] [main/DEBUG] [cpw.mods.modlauncher.LaunchPluginHandler/MODLAUNCHER]: Found launch plugins: [eventbus,object_holder_definalize,runtime_enum_extender,capability_inject_definalize,accesstransformer,runtimedistcleaner]
[11Aug.2021 11:51:39.201] [main/DEBUG] [cpw.mods.modlauncher.TransformationServicesHandler/MODLAUNCHER]: Discovering transformation services
[11Aug.2021 11:51:39.228] [main/DEBUG] [cpw.mods.modlauncher.TransformationServicesHandler/MODLAUNCHER]: Found additional transformation services from discovery services: java.util.stream.ReferencePipeline$3@26425897