This error appears when Media Composer 2022.4 attempts to open a project from a FUSE mount that emulates the Avid Nexis file system. As of May 2022, Avid has acknowledged this as a bug, and as of July 2022, this bug has been fixed in Media Composer version 2022.7.
The only way to prevent this error from happening is to either downgrade Avid Media Composer to version 2021.12.2 or to upgrade it to version 2022.7 or a newer version.
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