Dear Kaularikar
Good day! Thank you for posting in Microsoft Community. We are happy to help you.
According to your description, the error message "Access denied. You do not have permission to perform this action or access this resource" appears when you try to create an Upload File question in Microsoft Forms.
We did a test in Microsoft Forms and found we can reproduce the error message when trying to create an Upload File question in a form in Microsoft Forms. We tried to directly create a form from OneDrive for business as well but still got the same error message.
For the situation, we deeply understand the inconvenience caused and apologize for it.
Given this, since we reproduce the situation in Forms, it could be related to a temporarily server-side behavior. To confirm that, we sincerely recommend you contact your Microsoft 365 administrator and create a support ticket from Microsoft 365 Admin Center > Support > New service request.
The support team over there has higher permission than us, they have more resource to investigate the situation further, they have the correct escalation channel as well. This would be the more efficient way in handling the case for you.
For reference: Get support | Microsoft Docs How do I find my Microsoft 365 admin
Your patience and understanding are highly appreciated. Hope you keep safe and healthy always!
Sincerely,
Stacey | Microsoft Community Moderator
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