Shared folder on MacOS “Failed to open, no permission to access folder.”

What I’m trying to do

I have a work MacBook with two users: Work + Private.
I have the Obsidian vault in the shared folder where both users can access /Users/myname/Public/Obsidian
When I try to open the vault from my Private user, obsidian is failing with the error Failed to open. no permission to access folder

Things I have tried

When I try to open the vault in the above-shared folder, I get this error

I am able to open from the Work user where these vaults got created. But I’m not able to do so, from the Private user.
I enabled Shared Folder of the vault by pressing Get Info in mac.
The Sharing & Permissions for the vaults is Read and Write for every user.

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