To address the challenges of prolonged current isolation times and high dependency on varistors in traditional flexible short-circuit fault isolation schemes for DC systems, this paper proposes a rapid fault isolation circuit design based on an adaptive solid-state circuit breaker (SSCB). By introducing an adaptive current-limiting branch topology, the proposed solution reduces the risk of system oscillations induced by current-limiting inductors during normal operation and minimizes steady-state losses in the breaker. Upon fault occurrence, the current-limiting inductor is automatically activated to effectively suppress the transient current rise rate. An energy dissipation circuit (EDC) featuring a resistor as the primary energy absorber and an auxiliary varistor (MOV) for voltage clamping, alongside a snubber circuit, provides an independent path for inductor energy release after faults. This design significantly alleviates the impact of MOV capacity constraints on the fault isolation process compared to traditional schemes where the MOV is the primary energy sink. The proposed topology employs a symmetrical bridge structure compatible with both pole-to-pole and pole-to-ground fault scenarios. Parameter optimization ensures the IGBT voltage withstand capability and energy dissipation efficiency. Simulation and experimental results demonstrate that this scheme achieves fault isolation within 0.1 ms, reduces the maximum fault current-to-rated current ratio to 5.8, and exhibits significantly shorter isolation times compared to conventional approaches. This provides an effective solution for segment switches and tie switches in millisecond-level self-healing systems for both low-voltage (LVDC, e.g., 750 V/1500 V DC) and medium-voltage (MVDC, e.g., 10–35 kV DC) smart DC distribution grids, particularly in applications demanding ultra-fast fault isolation such as data centers, electric vehicle (EV) fast-charging parks, and shipboard power systems.