When I try and copy a folder with data in it to my vault I get an error. I can copy the files within the folder without issue. I get the error can’t read from the source file or disk.
Welcome to the Cryptomator Community 
when you look in the general preferences of Cryptomator, tab “Virtual Volume” what is selected in the dropdown menu?
And does this also happen with other folders? Is the error shown immediatley or only after a while?
And does log file contain any ERRORs, WARNings or Exceptions?
Apologies for bringing this post up again, but did you find a solution? I have the same issue copying or making a folder in file explorer on Windows 11 to a vault on an Icedrive mounted drive