This command overwrites a default pointer file that has been in place since about fedora 32 or 33 which redirects grub to the actual file at /boot/grub2/grub.cfg. If you were to run ls -l /efi/grub*.cfg you would also find two symlinks there that point to the actual grub.cfg file.
What the command does is overwrite that pointer file. Kernel and system updates which are done automatically never touch the file under /boot/efi so the system never sees updates and the only way to update it then becomes manually.
Recovery requires removal of the file you created and re-creating the proper file so the system properly sees and uses newer updates.
sudo rm /boot/efi/EFI/fedora/grub.cfg /boot/grub2/grub.cfgto remove the invalid filessudo dnf reinstall grub2-commonwhich recreates both those files as they should be
The following 3 commands are functionally equivalent. The last 2 use symlinks that redirect the output to the file named in the first.
grub2-mkconfig -o /boot/grub2/grub.cfg
grub2-mkconfig -o /etc/grub2.cfg
grub2-mkconfig -o /etc/grub2-efi.cfg
My notes above explain that.