this 'MooV' file is damaged or unsupported. - AE can't open mp4 files which were once "online-only"

In Dropbox you can set some files or folders to be 'online-only', which makes them visible in Finder and apps but physically they're not available to open unless they are made 'available offline' and downloaded.

For some reason AE has problem opening mp4 files which were previously 'online-only', despite them being stored locally. Here are the steps to reproduce this bug:
1. Make some mp4 file online-only using Dropbox.
2. Open AE project file which has those files used in the project.
3. AE will give you an error:

1) After Effects error: The source compression type is not supported.
2) After Effects error: file 'XXXX.mp4' cannot be imported - this 'MooV' file is damaged or unsupported.

this is understandable, since the file is online-only so it's not stored locally yet.
4. Turn off AE, and make the mp4 file available offline using Dropbox.
5. Open AE again. Despite the file being now already available on the hard drive, AE still gives you the same error and marks the file as missing. Reimporting the file again doesn't fix this.

Only ways to fix this is to either:
a) make a copy of the mp4 file and reimport it again
b) reinstall AE

I think that sometimes clearing the cache works too but its not a guarantee.

AE version 24.5 build 52
OSX Sonoma 14.5