Storage variables not working properly

Hey there, having an issue with external storage on the latest version of nextcloud. When creating an external storage with the correct permissions (0775, www-data), it shows a red exclamation point instead of a green icon. It is fixed by removing my $user variable. Do variables not work anymore? I have had this working a few months ago.
storage location: /NXC/cloud/$user vs /NXC/cloud

Thank you

Still broken