Can not Sync Joplin to Nextcloud. Bug or user error?

I'll post to github if noone sees an obvious user error and there are no suggestions to try.
Joplin version: 2.8.8
OSes: Ubuntu 22.04, Fedora 36
Syncing to Nextcloud server on the web, running ubuntu 22.04.
I can connect to Nextcloud and successfully copy files to/from there using Dolphin file manager.
Sync settings:
Joplin Sync target: Nextcloud (have also tries WEBDAV after repeated failures)
WEBDAV URL: https ://
username and password set and have been check and verified by me

No matter if Nextcloud or webdav syncing used, I always receive the following error:
Last error: Error: Could not upgrade from version 0 to version 1: MKCOL .resource/: Unknown error 2 (404): Page Not Found body { background-color: #f5f5f5; margin-top: 8%; color: #5d5d5d; font-family: -apple-system,BlinkMacSystemFont,"Segoe UI",Robo


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