Hi G_711,
Here is an update about your problem:
First, according to this official article: Change sync conflict settings for Office files, the cause of the "upload failed" is the sync conflict.
Furthermore, refer to this article: Collaborate on Excel workbooks at the same time with co-authoring, there are many possible cause for a sync conflict, generally, it can be:
1. Someone uses an Excel feature that is not fully supported in Excel co-authoring yet. This is known issue cause. Refer to Remove unsupported features from the file, below is the list
2. Multiple people are making a change to the same thing. This will sometimes cause conflict. My experience is, for example, when multiple users editing the same sheet but use filter/sort/custom view.
That’s why the issue happens occasionally.
And in your first reply that "clearing Office cache can temporarily make the problem go away", clearing cache will let OneDrive and Office forget the unsaved changes, so that they will not try to merge conflict, that’s why the issue can disappear by clearing cache. But once there’s a sync conflict caused by any possible cause again, the error message can appear again.
Furthermore, just like your test result, the sync conflict doesn’t happen when all users are editing only with Office Online, but generally happen when users co-authors with other desktop apps in different devices. That is because only when they edit on those desktop apps, the sync will happen, the sync conflict will happen.
Best regards,
Jazlyn