Lxc export throws (Backup Storage) error - Unable to generate compressed file

I haven’t really found a solution to this problem yet but as a workaround (and maybe a better practice), I have started using storage volumes instead. All the application related data (in this case nextcloud’s data dir) gets saved to storage volumes and container itself remains barebones carrying nothing else but the application setup itself.

As for the backups, I am export containers (lxc export) and storage volumes (zfs send).