Catalina cannot overwrite files without adding another copy of the file

Hi

So I have had this problem when working with files. This dose does not happen all the time, but very often. Let's say that I have a .JPG file and I need to change the file in Photoshop or any other application. I open the file and then I do my changes and go to Save As. Then I get a window saying that this filename is already taken and if I want to replace it. I definitely want to replace it so I will click Replace.

But I won't get replaced. It will only create another file named documents copy.jpg

This is super annoying and takes time when you are working with a lot of files. Is this a bug or can I do something to fix this?

I have 2 computers, one at home and another at the studio and this is happening with both of them.