Error Code 36 - dragging desktop items to trash

Hello,

I've had this issue for awhile and I don't know what to do to fix it (the online fixes didn't help). I find that most people with this error are moving something to an external drive. My desktop is saved in iCloud, "iCloud Drive - Desktop"

I have some screenshots, PDFs and files on my desktop (which are in iCloud) and when I drag them to Trash I get error 36.

I would really appreciate any help to figure out why this is happening. I am running macOS Monterey Version 12.6