Cannot Preview a Rule Against Files and Folders in iCloud

Although Hazel v5.0.3 will run rules on files and folders in iCloud, I find it will not preview rules against files and folders located there. All files and folders are grayed out.

Is this a bug or a macOS 11 limitation?

Can you show a screenshot of this? Note that app folders will be inaccessible but any files you store in iCloud drive outside of those should be available.

Hi, wondering how this issue is progressing? I get a similar issue but not on cloud files.... on pretty much all folders. I can only select from the recent list which does not help when creating a new rule or working on others in the library (but not in the recent folders list). To date I have worked around it by creating a shortcut to the folder in the finder sidebar and that way I can select that folder when I do a preview.
I assume that what should be ahh-ending is that Hazel should default to the 'watched' folder when previewing a rule

Your issue is a different one and probably should have posted a separate thread. If you can replicate this, please record doing this from a cold start of Hazel and email it in to support. Thanks.