Lightroom Classic - Lightroom CC sync issues

So, I have been using a PC and the same catalog sense forever. I also use Lightroom mobile on my phone/iPad and edit using collections. I may I bought a MacBook Pro I figured I would start a new catalog. I did set this catalog to my primary. However all my collections remained and I could view/edit them. No problem and everything worked as intended.

When Apple released their M1 Max I bought one. But this time I did not want to start a new catalog so I just copied the one I used on my previous MBP. But now my collection do not work anymore. I just get “XXX.ARW” could not be used because the original file could not be found. Would you like to locate it? Previous location: /Users/XXX/Pictures/Lightroom/Mobile Downloads.lrdata/downloaded-smart-previews/XXX.ARW

I can not get it to work. I talked to the Adobe support and they keep telling me I need the files locally stored on my MBP. But I did not need that on my previous MBP. Any suggestions? I feel like the entire Lightroom sync feature is malfunctioning. I will post some screenshots.