Sync error on Windows client: could not be downloaded because the name conflicts with a local file

Nextcloud version : 20.0.9
Operating system and version: Ubuntu 20.04 LTS
Apache or nginx version: nginx/1.18.0
PHP version : PHP 7.4.16
NC client version 3.3.1

The issue you are facing:
I was using the NC client from before the virtual files option existed.
So last week I enabled the virtual files option after updating to the latest client.

After doing so I get about 10 errors for files stating (translated, my client is in Dutch):
file XXXX.nfo could not be downloaded because the name conflicts with a local file.
file XXXX.md could not be downloaded because the name conflicts with a local file.

For some reason it is only .md and .nfo files in my “movies” dir. The rest seem to go fine.

I have no clue what to do with these errors. I have already removed and reïnstalled the client. But it seems to remember all my settings, even after removing local appdata and all registry keys (this is very annoying btw.). I even tried to rename some directories via the web interface to see if that solves the issue, does not look like it…

The files seem to exist (or at least the stub) on my machine. But I cannot do anything with it.

Is there any way to troubleshoot what the issue is with this? I am not feeling confident that the files that I DO need offline are being synced ok now, because of the red X caused by the above errors…

No one? Am I the only one with this issue?