Looks like both the Finder crashed once and DropBox crashed three times. Otherwise I don't see anything which would interfere with the normal operation of macOS although I'm not a macOS software expert.
Try running Disk Utility First Aid on the hidden Container. Within Disk Utility click "View" and select "Show All Devices" so that the hidden Container appears on the left pane of Disk Utility. Select the hidden Container which has your "Macintosh HD" & "Data" volumes and run First Aid. Even if First Aid says everything is "Ok" click "Show Details" and scroll back through the report to see if any unfixed errors are listed. If there are any unfixed errors listed, then try running First Aid while booted into Recovery Mode, otherwise you will need to erase the drive followed by reinstalling macOS & restoring from a backup.
Make sure the Drop Box software is completely up to date.
I'm wondering whether Drop Box is interfering somehow. I have heard from other contributors that many of the file syncing apps/services don't use the native macOS built-in features so the file syncing apps tend to work the system harder.
So is there any difference with being able to compress a folder while booted into Safe Mode?
Are there any special characters in the file or folders involved? If so, then those special characters could be causing a problem.
How large is the file or folder?
What type of files are you trying to compress?
Will these archives of compressed files be utilized only by you on macOS or will you be sharing them with others? With Windows users? Do you want these compressed files in .zip format, or would another type of compressed archive file be acceptable? I have had some issues creating .zip archives (not with the error you are receiving here though), and instead of wasting time on it I just used an alternate type of compressed archive format such as .tgz.