iCloud Storage Insufficient Despite Having 2TB Plan

I have been using the 2TB iCloud storage plan for a while now, and currently, only 68.1 GB is in use. However, when I try to upload a 255 GB file, I receive an "Insufficient Storage" error. I'm posting here to understand and resolve this issue.

My storage usage is quite low at only 3%, yet I can't comprehend why I'm encountering this error when attempting to upload a large file. Do you have any solutions or suggestions for resolving this issue?

Also, any recommendations regarding storage management would be greatly appreciated. If other users have faced a similar problem and found solutions, I'm eager to hear about them.

I tried to reInstall Icloud and restart computer etc..