There are a few possible causes of this error:

1. The owner of the project file has stored their project file on OneDrive or another cloud drive that NVivo is unable to access.  In this case, the project file owner should move their files to their local drive to allow access for cloning.
2. Make sure the user had read/write access to the Temp folder. (Note: Files in the folder may be Read Only) NVivo requires access to the Temp folder to convert the Cloud project file to Windows.
3. NVivo will allocate at least 2x the size of the project file when cloning it from Collaboration Cloud. Make sure there is enough space on the hard drive for the NVivo project.
4. The local user account name contains spaces ("John Doe")  Solution:  If the account name is John Doe, change it to John.Doe, JohnDoe or other format that doesn't contain spaces.