Move the folder out of the trash or select another location, trying to wrap to a folder in the Trash/Bin can result in all kinds of issues as some services can not read or write to the Trash.
Either create the folder or select a different folder, processing to a non-existing folder will fail.
Either unlock the folder (Switch to the Finder, select the folder, select "Get Info" from the file menu and unselect "Locked") or choose a different location. Processes can not modify files in a locked folder.
Either allow access to that folder (Switch to the Finder, select the folder, select "Get Info" from the file menu, under the users groups, make sure you are set to the owner and have read/write permission) or select a different location.
Modern versions of the macOS may also apply security to App Wrapper, preventing it from accessing files and folders. Open "System Preferences", select "Security & Privacy", scroll the left hand list to find "Files and Folders" and make sure any folders listed under App Wrapper are checked.
Either allow access to that folder (Switch to the Finder, select the folder, select "Get Info" from the file menu, under the users groups, make sure you are set to the owner and have read/write permission) or select a different location.
Select a different location that is not being used by iCloud. iCloud does all kinds of weird and wonderful things to application being wrapped and should be avoided at all costs. If you use iCloud for backup, consider using a Local Time Machine drive instead.