Takes forever to run file sharing

I’m trying to give access of a specific folder to Docker through file sharing. I browsed and selected the folder so I assume the path is correct and case-sensitive, but after I click apply & restart there has been no response for a really long time. Restarting the laptop doesn’t work. The system I’m using is Ventura 13.5.2 on macOS with an Apple M1 Pro chip and memory of 16GB.

Is that folder outside of /Users which is shared by default?