Is local publishing working with other projects?
Are the permissions on that local folder and project file correct? Try adjusting them if not Change permissions for files, folders, or disks on Mac - Apple Support
Maybe try creating a new folder on your Mac and changing the path to that new folder to see if it sticks.
9.3 brings official support to Sequoia. Might be a good idea to upgrade to it if you want to ensure compatibility going forward. There’s a 25% coupon code for the rest of October if you want to save some money on the upgrade.