@Barzan M Hassan , Based on my research, I find there's some policies in Setting Catalog as below may cause our issue.
- Restrict Users to Store Data in Local Drive
- Prevent access to drives from My Computer
https://www.anoopcnair.com/prevent-users-to-save-files-on-drives-intune/
Note: Non-Microsoft link, just for the reference.
You can check if we have such policies configured in our environment. If there's any update, feel free to let us know.
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