The "unable to upload" smart album does not show all problematic items.
"On this Mac only" usually refers to referenced items, photos or videos that have not been copied into the photos library.
You may also test with a smart album with the rule "Photo is referenced". Is this album also empty?
If not, proceed as described here: Check the status of your library in Photos for macOS - Apple Support
The message could also mean items with missing originals.
If all fails you may need to test all items in your library, if you can import the original image files into another library, created for testing, see: How to Weed out Legacy Media in Photos for Mac - Apple Community