Are you sure you want to delete prompt issue!
About five years ago, I downloaded Dropbox onto my iMac (2017) and moved my Desktop folder into Dropbox. In turn, I worked from alias folders on my Desktop.
I did not notice issues at the time and everything seemed to be working albeit a few little bugs now and then with permissions.
Recently, I upgraded to the Mac Studio and slowly experienced increasing sharing and permission issues. Most annoyingly, the 'are you sure you want to delete' prompt popping up each time I delete a file.
I had forgot about the original Desktop folder to Dropbox. Thinking that Dropbox was the issue with them not working well with Apple, I uninstalled the application and the issues got worse. Most of my files had disappeared and panic set in.
To solve, I reinstalled Dropbox, signed in, and moved the Desktop folder from Dropbox back to Mac (HD, User, Desktop), the original location.
Now, everything seems to be working just fine and Dropbox is syncing and backing up as required.
Mac Studio, macOS 15.1