Copy paste does not work from and to Desktop

[Nav]

A similar problem is reported here by someone: https://askubuntu.com/questions/1241475/cut-paste-or-copy-paste-not-working-on-ubuntu-20-04-on-using-right-click-context

Everything was working fine when I had installed Ubuntu. This problem began either ever since I did an update or perhaps after I installed (don't know which) program.

The problem:
If I copy a file/folder directly from the Desktop, then open Nautilus and try to paste the file/folder into any other folder, the Paste option is shown as disabled, in the right click menu.
Image attached.
Same way, if I copy a file/folder from Nautilus and try pasting it directly onto the Desktop, the Paste option is shown as disabled in the right click menu.

However, when I open the Desktop folder in Nautilus, I can copy or paste any files or folders to any other file or folder that's open in Nautilus.

I'm sure this is not a file or folder permission issue. I'm able to copy and move the files/folders without sudo when I use the terminal.

If I try to copy a file from Nautilus and right click on any folder on the Desktop, the "paste into folder" option is not available either.

Guys, Ubuntu has such really annoying bugs related to the Desktop. Please fix them ASAP.

ProblemType: Bug
DistroRelease: Ubuntu 20.04
Package: nautilus 1:3.36.3-0ubuntu1.20.04.1
ProcVersionSignature: Ubuntu 5.13.0-27.29~20.04.1-generic 5.13.19
Uname: Linux 5.13.0-27-generic x86_64
ApportVersion: 2.20.11-0ubuntu27.21
Architecture: amd64
CasperMD5CheckResult: skip
CurrentDesktop: ubuntu:GNOME
Date: Sat Jan 22 20:17:40 2022
GsettingsChanges:
 b'org.gnome.nautilus.compression' b'default-compression-format' b"'tar.xz'"
 b'org.gnome.nautilus.window-state' b'sidebar-width' b'205'
 b'org.gnome.nautilus.preferences' b'click-policy' b"'single'"
 b'org.gnome.nautilus.list-view' b'default-column-order' b"['name', 'size', 'type', 'owner', 'group', 'permissions', 'where', 'date_modified', 'date_modified_with_time', 'date_accessed', 'recency', 'starred', 'detailed_type']"
InstallationDate: Installed on 2021-10-24 (89 days ago)
InstallationMedia: Ubuntu 20.04.3 LTS "Focal Fossa" - Release amd64 (20210819)
ProcEnviron:
 LANGUAGE=en_IN:en
 PATH=(custom, no user)
 XDG_RUNTIME_DIR=<set>
 LANG=en_IN
 SHELL=/bin/bash
SourcePackage: nautilus
UpgradeStatus: No upgrade log present (probably fresh install)
usr_lib_nautilus:

[Nav (navipe)]

Even pasting with Ctrl+v to the Desktop does not work. From any folder on Nautilus to Desktop and Desktop to any folder on Nautilus. Both don't work.