The sqlite extension is out of date (not likely to be updated) and not handling the new compiled path to assets. It also cannot cope with being fed the PathToAssets blocks from Taifun's Tools extension, and crashes the app.
Because of this you should try as I suggested and copy the database to your ASD, as in my blocks above, then access it from there (which also gives you read/write)
Your alternative is to use Taifun's SQLite extension, which is up to date and full support is provided. I would recommend this course of action given your determination to access the database from assets when compiled.
(note: the File extension is also by Taifun, not me...)
Honestly, at the moment I am a little bit confused... I have too many different results. I am sure that someone depends by the extension(s) but someone is coming from Android 11. I think that the simpler thing from a management point of view is find a way so that uploading a DB on the Media it will work both with Companion and apk. It may be a little bit more complicated to realize but seems to me that is the way to solve and prevent any DB update problems.
I have also researched about this problem and in essence, there are two problems:
The SQLite Extension (bennedum.SQLite) has a bug, because it hardcodes the path to the SQLite database file, so when App Inventor is updated (along with update to Android 10), the extension cannot import uploaded asset file anymore.
Android 10 fails to read (well, actually fails to copy from asset folder to ASD folder) if the file is compressed in the distributed apk file. Because media files (with media-files-extension of png, mp3, etc.) are not compressed again in the apk file, Android 10 successfully copy them. So, the solution for this problem is to use change to uploaded file extension to become media-file extension (png, mp3, jpg, etc.).
I got the idea after reading a discussion about how to pass file from assets folder to native program (C++). The link to the discussion is here https://groups.google.com/g/android-ndk/c/ppCEAY6Hpag and the part of the discussion that relates to this problem is here:
The general work around solution for both the problems (no. 1 and 2) is to (i) upload sql-statement file that build the table(s) for the first time (and insert some initial data) with a media-file-extension, (ii) using block-code to copy the file from asset folder to application specific folder and (iii) then split the sql-statement file into several sql-statements and (iv) execute all the sql-statements.
I cannot see any need for the file to have the sufffix .png (if it is a text file) when stored in the assets / media folder. This folder is only readable by the app itself....and can easily be opened with the File component.
I am not sure if your approach will cause any problem in every android device. But I notice two problems when I upload "sqlstatement.txt" to the asset folder (uploading without the media-files-extension and without running the copy-from-asset-to-asd-folder block) :
It is rather slow to read and parse the text file from asset folder, when running the application for the first time in App Inventor Companion.
The application cannot find the "sqlstatement.txt" when I build and install the apk file to my device (Android 11, colorOS V11.1)
Companion is for development, it does not always behave the same. A large file will take time to transfer across to and back from the AI2 servers.
Sounds like your issue is specific to the extension you are using (bennedum ?), and not a generic issue. I forked the bennedum extension and updated it a while ago, altering several elements, and so that sqlite files could be read from the assets for all android versions.