Couldn't start Dropbox - macOS Monterey 12.6.1

My Dropbox (currently at 159.4.5870) stopped syncing on Friday (Status shows "Can't sync") showing an error as it launches when my user account logs in. "Couldn't start Dropbox. This is usually because of a permissions error. Storing your home folder on a network share can also cause an error. For more information, cick the help button below. My mac recently updated to 12.6.1 and that's when I noticed the problem. This issue did happen before when I was at 12.6.0 and then I did an advanced reinstall and the problem went away even after I updated Dropbox to the version where it now stores its cache in ~/Library/CloudStorage/Dropbox instead of the Dropbox folder under the user's home folder. I have already set the Full Disk Access permission for Dropbox in System Preferences, even before I had this issue pop up last week.

This is similar to last week's issue with eli1020 but they had more to report in the end of the dropbox_error...txt file than I do. The last line of my error file is:

dropbox.sync_engine.nucleus.thin_client.exceptions.NucleusConnectionTimeoutError: Nucleus clients are not running. Connection error: None

Here is my complete error log (redacted):

bn.BUILD_KEY: Dropbox
bn.VERSION: 159.4.5870
bn.constants.WINDOWS_SHELL_EXT_VERSION: 55
bn.is_frozen: True
machine_id: 82c1d10f-c70e-5faa-b374-9bfda866e62e
pid: 831
ppid: 1
uid: 502
user_info: pwd.struct_passwd(pw_name='jch****', pw_passwd='********', pw_uid=502, pw_gid=20, pw_gecos='Jch****', pw_dir='/Users/jch****', pw_shell='/bin/zsh')
effective_user_info: pwd.struct_passwd(pw_name='jch****', pw_passwd='********', pw_uid=502, pw_gid=20, pw_gecos='J****', pw_dir='/Users/jch****', pw_shell='/bin/zsh')
euid: 502
gid: 20
egid: 20
group_info: grp.struct_group(gr_name='staff', gr_passwd='*', gr_gid=20, gr_mem=['root', 'admin', 'jch****'])
effective_group_info: grp.struct_group(gr_name='staff', gr_passwd='*', gr_gid=20, gr_mem=['root', 'admin', 'jch****'])
DYLD_LIBRARY_PATH: None
cwd: '/'
real_path='/'
mode=0o40755 uid=0 gid=0
parent mode=0o40755 uid=0 gid=0
HOME: '/Users/jch****'
appdata: '/Users/jch****/.dropbox/instance1'
real_path='/Users/jch****/.dropbox/instance1'
mode=0o40700 uid=502 gid=20
parent mode=0o40755 uid=502 gid=20
dropbox_path: '/Users/jch****/Library/CloudStorage/Dropbox'
real_path='/Users/jch****/Library/CloudStorage/Dropbox'
mode=0o40700 uid=502 gid=20
parent mode=0o40755 uid=502 gid=20
sys_executable: '/Applications/Dropbox.app/Contents/MacOS/Dropbox'
real_path='/Applications/Dropbox.app/Contents/MacOS/Dropbox'
mode=0o100755 uid=501 gid=20
parent mode=0o40755 uid=501 gid=20
trace.__file__: '/Applications/Dropbox.app/Contents/Resources/python-packages.zip/dropbox/client/ui/common/boot_error.pyc'
real_path='/Applications/Dropbox.app/Contents/Resources/python-packages.zip/dropbox/client/ui/common/boot_error.pyc'
not found
parent not found
tempdir: '/var/folders/p5/g3dq42dj7pq92fld_77hgp1h0000gp/T'
real_path='/private/var/folders/p5/g3dq42dj7pq92fld_77hgp1h0000gp/T'
mode=0o40700 uid=502 gid=20
parent mode=0o40755 uid=502 gid=20
Traceback (most recent call last):
File "dropbox/client/main.pyc", line 810, in wrapper
File "dropbox/client/main.pyc", line 6423, in finish_dropbox_boot
File "dropbox/client/message_queue.pyc", line 305, in _wrapped
File "dropbox/client/main.pyc", line 5948, in _init_components_for_account
File "dropbox/client/main.pyc", line 5872, in create_sync_engine
File "dropbox/sync_engine_boundary/factory.pyc", line 225, in make_sync_engine
File "dropbox/sync_engine/nucleus/classic_client/sync_engine.pyc", line 244, in __init__
File "dropbox/sync_engine/nucleus/classic_client/modern_client/modern_client.pyc", line 322, in __init__
File "dropbox/client/gandalf/legacy.pyc", line 296, in add_on_changed_callback
File "dropbox/sync_engine/nucleus/classic_client/modern_client/modern_client.pyc", line 475, in _update_feature_configs
File "dropbox/sync_engine/nucleus/classic_client/modern_client/modern_thin_client.pyc", line 286, in UpdateFeatureConfigForFswRules
File "dropbox/sync_engine/nucleus/thin_client/fp_client.pyc", line 236, in __getattr__
dropbox.sync_engine.nucleus.thin_client.exceptions.NucleusConnectionTimeoutError: Nucleus clients are not running. Connection error: None