Yes, I am getting this as well in the Simulator (using objective-C). I get it when calling:
[[fm URLForUbiquityContainerIdentifier:nil] URLByAppendingPathComponent:@"Documents"]; // where fm is [NSFileManager defaultManager]
The Documents folder already exists in that file location.
Simulated Device iPhone SE (2nd gen) iOS 15.0; xcode Version 13.0 (13A233)