My Obsidian Sync is acting weird since yesterday. it is deleting remote files - the files in sync server

Hi all.

My Obsidian Sync is acting weird since yesterday. it is deleting remote files - the files in sync server.

Details:
I use PARA folder structure. and obsidian sync is deleting only the Resources folder which has some 350 files in it. all the other folders are intact. the local folder is not affected, it is not deleted at all. but inside obsidian, once the deletion is done, i cant see the folder. it was working fine with all the plugins. there was no issue until yesterday.

What i tried:

  1. I Deleted that remote vault thinking there is some issue and created new local vault from the existing local data folder (all files are intact here). no problem until now. then i created a new remote vault and started syncing. i uploaded everything no problem. but when i close and open obsidian, it started to delete all the files inside the Resources folder again. when i click on the sync status, it shows - deleting remote file xxxxx…
  2. I did the same thing again, deleted the remote vault and created a new remote vault and synced it. this time i opened my other device and i synced that device to this new vault. but again, when i close obsidian and reopen it, it started to delete the resources folder and files inside it.

My version is 0.16.2
I have emailed Obsidian support, waiting for their reply. but as i am freaking out. i thought of messaging here, if anyone has experienced this and solved it, Please help.

One thing that caught me for a loop at first is that the Sync Activity will tell you that it is deleting remote file X, after you have moved file X to another location in the vault. Then it will tell you that it uploaded file X at its new location. Since you have been using Sync a while, I doubt this is the problem, but I figured I should mention it just in case you inadvertently bulk moved your folder. That would be a good resolution.

I hope everything works out! Good luck!