Hi Community,
Solved! Go to Solution.
Thank you @icrew for your answer.
We actually got help on this one from a Google Workspace Support Specialist and he provided us with the proper solution in our case. Here is it below in case anybody in the community find it helpful:
⚠️ If you have been working with Google Drive file offline, please make sure to back it all up with GDrive online before continuing with the next steps otherwise these will be lost.
After backing your files up please do the following:
Quit Drive for Desktop (or force quite via the Activity Monitor)
Navigate to Finder and to Applications
Remove Drive for Desktop by dragging it to trash and empty the same after
Navigate to /Library/Application Support/Google/DriveFS/ and remove/delete this Folder
Empty trash
Make sure that the full disk permissions are granted in System Preferences > Privacy
Launch Drive for Desktop
This will force recreate the content cache folder and should potentially fix any remaining issues.