"cannot change folder"

I have added a new folder and attempted to create a very simple rule. When trying to preview a file against the rule I receive this error. Selecting the OK option merely reproduces the error in a loop that can only be resolved by force quitting Hazel.

What version of Hazel are you running? Can you tell me more about the folder you added?

yes I'm getting a similar message and loop

Hazel v 5.3.4
macOS v14.6.1 M1 chip

I first noticed the problem trying to preview a new rule on a shared folder in iCloud
decided to reboot the machine

Then noticed that whilst Hazel did still successfully identify and move files from my downloads folder
~/<user>/downloads.
if I pressed the preview button
- before even trying to select any file
- it displayed the directory I had selected
- it looped immediately on an otherwise happily functioning rule too

I sampled a few others - which behave likewise...

Save rules - delete and reinstall?
Or could I send you some more info?

Can you record a video of this? Also, a list of the folders this happened on (along with relevant info like if any are cloud services or network folders).