Here are a quite similar issues like you have. Hopefully these links help you.
The students can't upload the file in MS Forms sent as quizzes from MS Teams. Any solutions?
I created a Quiz Forms where students had to upload their documents in it. The Forms were assigned to the students via MS Teams, but they could not upload their documents. What might be the error in the process or technical glitches?
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JimmyYang-MSFT 53,851 Reputation points Microsoft Vendor
2020-06-05T08:42:46.053+00:00 Hi NiSTha-5686!
Are there any error messages when you upload your documents?
To narrow down this issue, we recommend you check your settings in the MS Forms:
*Document size: Check your document size limit when you create a new quiz
*Document type: Check if it has requirements about your upload document type.
Besides, you can also see if this Youtube video solution is worked for you. Although it is in Portuguese, you can add the subtitles to see it.