I am using a 2022 Mac Studio M1 Ultra running Ventura 13.2.1, however I have been experiencing this issue since Monterey.
I can't compress or copy/duplicate folders when the parent folder is synching to iCloud (i.e. there is a dotted-line cloud symbol to the right of the folder name in Finder), however individual files do not pose this problem and both functions work normally as soon as the parent folder is fully synched to iCloud.
I have tried all the same things as this user brought up in a similar post here, however I have narrowed it down further to only be an issue when the folder is actively synching.
This person seems to have solved the issue by reverting to a previous Time Machine backup, however I use Backblaze rather than Time Machine so this was not a workaround for me.
The Problems
When I try to zip a folder inside of a folder that is currently synching to iCloud I receive an error from Archive Utility that reads: "Couldn't communicate with a helper application."

When I try to duplicate or copy a folder to or from a currently synching iCloud folder I receive an error that reads "The Finder can’t complete the operation because some data in “” can’t be read or written. (Error code -36)"


