Preview: Editing PDF or JPG files in Monterey Dropbox folder creates a copy

Hello,

First, please know that I have also posted this question on the Dropbox forum. I am posting it here because I am wondering if the issue is with Preview.

System: MacOS 12.7.4, Dropbox 198.4.7615

All files are stored locally in Users>Username>Library>CloudStorage>Dropbox

Issue: When I open a PDF or JPG file in my Dropbox folder with Preview (rotate, delete a page, annotate) the file opens as a copy.

This issue does not occur with txt, rtf, docx, xlsx. They can be edited without a copy being generated.

If I pull the file to my desktop (out of Dropbox folder) it edits without a copy being made.

I have another system (MacOS 10.14.6, Dropbox 198.4.7615)

All files stored locally in Users>Username>Dropbox that does not have this problem.

What has been the most perplexing part of troubleshooting this issue is the fact that it only happens on the 12.7.4 system, with Preview 11.0. The 10.14 system, with Preview 10.1 is just fine. Both systems are running the latest version of Dropbox.

The only variables are the location of the DropBox folder and the versions of Preview. If it is Preview 11.0, why would the file’s location matter? I have checked permissions on the files and the CloudStorage folder, I have Read/Write.

Appreciate any advice.