NextCloud currently has to copy all files that it wants to upload & back up to its own app directory which is pain to actual usability. I'm guessing this annoyance is also related to these fun permission limitations.
For example, the Kiwix app was able to read .zim files directly from SD card (which you very much want to do since e.g. Wikipedia is >100 Gb). Not anymore.
They haven't implemented the feature yet, at the moment.