buttercup-browser-extension: Failed adding new entry: Failed writing remote file

Error message “Failed adding new entry: Failed writing remote file: /path/to/archive.bcup” is displayed when a new entry is added in Chromium browser on Windows 10. Archive file is stored in Nextcloud folder. Console output:

setup-index.js:98
VError {jse_shortmsg: "Failed adding new entry: Failed writing remote fil…trimmed/path/to/archive.bcup", jse_info: {…}, message: "Failed adding new entry: Failed writing remote fil…trimmed/path/to/archive.bcup", stack: "VError: Failed adding new entry: Failed writing re…ieckodmcppbnembejjmabajjjj/setup-index.js:1:70791"}
    jse_info: {authFailure: undefined}
    jse_shortmsg: "Failed adding new entry: Failed writing remote file: /path/to/archive.bcup"
    message: "Failed adding new entry: Failed writing remote file: /path/to/archive.bcup"
    stack: "VError: Failed adding new entry: Failed writing remote file: /path/to/archive.bcup↵    at chrome-extension://heflipieckodmcppbnembejjmabajjjj/setup-index.js:1:70791"
    __proto__: Error

Tried to lock and unlock vault in the browser extension, but still the error was shown. Tried to remove and re-add the vault - the same outcome.

It seems like permissions related error, but I have no idea what permissions should be granted as the logged in user has full access to the archive file.