RatFink
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We believe the issue may have been resolved with the release of macOS 26.4, as confirmed by one of the customers in this thread. Could you please confirm whether the issue has also been resolved for you after updating to macOS 26.4?
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This error also occurs if the folder you're using happens to be backed up via OneDrive. The solution - move the files to a folder not backed up by OneDrive fixes the issue. Temporarily turning off OneDrive syncing didn't work for me. I had to move it to a completely different folder.