Cannot copy folder in "Documents and Desktop" folders linked with iCloud Drive

Question

I am using a MacBook Air (M1, 2020) with macOS Monterey Version 12.5 (21G72). I recall nothing unusual until yesterday when I tried to duplicate or copy one folder on my Desktop folder. The process seems to always be stuck at

 Zero bytes of 2 KB - Estimating time remaining ...  

or often the process failed and I received this:

Now, this is a list of what I have tried so far:

What does not work

1. Because my Desktop and Documents folders are synced with iCloud Drive, I tried copying/duplicating folders in Documents and the result is the same as above.
2. I tried to do a killall bird in Terminal as described here.
3. I tried the process described here.
4. I tried resetting SMC and rebooting my Mac.
5. I tried disabling iCloud Drive and then re-enable it.
6. Copy/duplicate of folder won't work regardless of size.

What does work

1. I tried copying/duplicating the folder with cp in Terminal, and it works perfectly.
2. I tried copying/duplicating the folder in ~/Downloads with Finder, and it works perfectly.
3. Copy/duplicate of files works regardless of size.

I hope this frustration will not occur to any of you.

Is there an option to let finder copy items or do I need to host these files outside iCloud Drive if I need to copy them?

Answer 1

Try right-clicking on the folder or find whatever data doesn't have read/write permissions, click Get Info, and at the bottom is Sharing & Permissions. If you find a file that you don't have those permissions on, change it there and try again.