iCloud + Xcode error (iCloud corrupted)

Hi!

I recently moved to a new Macbook Air (2025) and transferred all my files and folders from my previous Macbook Air to my new laptop.

Before purchasing the new Macbook, I was facing an issue with my iCloud when trying to "Keep Downloaded" files and "Download" files from iCloud in Finder.

I am usually using ForkLift for all my Finder requirements, although for iCloud features, I use Finder.

My error:

iCloud won't let me download or "keep downloaded" files / folders.

These two options are hidden since the past few months on many files and folders randomly, and are available on remaining and folders occasionally.

The problem started when I started downloads for my music and the error continued on to other folders and files later on. I usually purchase or download my apps from the App store, and I also have purchased software from online websites. These kind of errors used to be for a Windows user who would normally pirate the software. I've not utilised pirated software or any illegal/arbitrary software downloads.

For Xcode, I've been learning swift although my recent projects won't let me save the files. Here are the errors I'm getting on Xcode:

The above error occurs randomly when trying to open a Xcode project.

The above error occurs when trying to save a Swift file after editing.

I'm unable to submit iCloud error screenshots although that too had an NSerror type of error display.

Please could you anyone suggest what went wrong with my Macbook and iCloud? Xcode compiles and builds Flutter apps without any errors, and only displays errors when saving a swift file/project file.

Thanks!