M2 MacBook Pro apps have file read permission issues

I was wondering if I could get any help with an issue I'm having. I'm on an M2 MacBook Pro (2023) running Tahoe 26.1

It seems that all my application have lost their file read permissions. For example, when I try running VScode it will lag a ton when I click File->Open, and then when I try to open a folder and looks at a specific file it doesn't load. I pasted the error log from VS code below.

Something similar is happening with my other apps such as GitHub desktop, making me believe it is a system wide issue.

The only way I was able to get things to open is when I drag them into my user folder, causing me to think this issue is related to iCloud, because I have iCloud Drive enabled.

Any recommendations on how to fix this issue? I am willing to disable iCloud if necessary.

2025-11-16 17:32:30.884 [info] MCP Registry configured: https://api.mcp.github.com
2025-11-16 17:32:30.930 [info] Settings Sync: Account status changed from uninitialized to unavailable
2025-11-16 17:32:31.698 [info] Started local extension host with pid 1100.
2025-11-16 17:32:32.807 [error] Failed to fetch MCP registry providers Server returned 404
2025-11-16 17:32:33.475 [info] [perf] Render performance baseline is 17ms
2025-11-16 17:32:38.870 [error] Error: ETIMEDOUT: connection timed out, read: Unknown (FileSystemError): Error: ETIMEDOUT: connection timed out, read
    at x7.create (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/main.js:38:29705)
    at Xi (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/main.js:38:26959)
    at Uc.jb (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/main.js:62:22381)
    at Uc.readFile (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/main.js:62:17038)
    at async D4.m (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/main.js:62:23894)
2025-11-16 17:33:10.162 [warning] NotebookEditorWidget#setInput failed Unable to read file '/Users/currentuser/Documents/GitHub/spotify-artist-prediction/random-forest.ipynb' (Unknown (FileSystemError): An unknown error occurred. Please consult the log for more details.)
2025-11-16 17:33:10.162 [error] Error: Unable to read file '/Users/currentuser/Documents/GitHub/spotify-artist-prediction/random-forest.ipynb' (Unknown (FileSystemError): An unknown error occurred. Please consult the log for more details.)
    at Kkt.G (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:3828:65903)
    at Object.error (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:3828:66049)
    at Object.onError (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:30:91456)
    at vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:30:90628
    at vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:30:89064
    at Array.forEach (<anonymous>)
    at _7i.h (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:30:89053)
    at _7i.error (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:30:88814)
    at Rle.value (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:3828:76363)
    at I.C (vscode-file://vscode-app/Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/workbench.desktop.main.js:29:2392)
2025-11-16 17:33:23.561 [info] ChatSessionStore: Migrating 0 chat sessions from storage service to file system
2025-11-16 17:33:23.628 [info] Started local extension host with pid 1333.
2025-11-16 17:33:23.956 [info] MCP Registry configured: https://api.mcp.github.com
2025-11-16 17:33:24.090 [info] Settings Sync: Account status changed from uninitialized to unavailable
2025-11-16 17:33:24.566 [error] Failed to fetch MCP registry providers Server returned 404
2025-11-16 17:33:26.200 [info] [perf] Render performance baseline is 16ms
2025-11-16 17:34:18.908 [error] lock() request could not be registered.: InvalidStateError: lock() request could not be registered.
2025-11-16 17:35:04.528 [error] An unknown error occurred. Please consult the log for more details.