iCloud for Windows storage glitch

I upgraded my iCloud plan to 2TB. I'm using my Windows PC to transfer files from my Google Drive using Drag and Drop in File Explorer. Worked great until I hit a wall.

It's telling me I don't have enough storage space. That would have been true with my old 200gb plan but I have tons of space now. I feel like the iCloud drive on my Windows PC doesn't recognize the upgraded storage. When I open the iCloud app on the PC it shows the correct storage availability.

I don't want to do this with the web browser as it doesn't let you upload folders, only individual files. Any suggestions?