Hazel Rule Intermittently Fails on Nested Folders with iClou

I'm encountering a complex and rare bug with Hazel 5.2.3 on macOS Sonoma 14.4.1, where a rule monitoring nested folders in iCloud Drive (`~/iCloud Drive/Projects/`) intermittently fails to process files in deeply nested subfolders (e.g., `Projects/ClientA/Reports/2023/Q4/`). The rule targets documents (PDFs, DOCXs, ZIPs) with an "archived" tag, unmodified for 14 days, and moves them to `Archives/[Parent Folder Name/]`, adds a Finder comment, and renames them. While it works for top-level or shallow subfolders, files in deeper nests are often skipped, with no errors in Hazel’s log. Preview mode confirms the files match, and manually running the rule sometimes works. The issue seems tied to iCloud syncing (pausing sync improves reliability), Spotlight metadata lag, or tag syncing issues across devices. I’ve ensured Hazel has Full Disk Access, rebuilt Spotlight indexes, and tested simpler rules, but the problem persists. Has anyone seen similar behavior with iCloud and nested folders? Any tips on debugging, perhaps enabling Hazel’s debug mode or checking specific logs? I’d appreciate any insights!

Are all the folders and files in question downloaded locally to your drive?