Final Cut Pro export fails

I see you are on a 2021 M1 Pro MacBook Pro 16, 16GB, running Sonoma 14.6. As of the Etrecheck report, it had not been rebooted in 29 days. Can you reboot it and try again?

That is a decode error that may imply a problem with the file. Please get the MediaInfo utility from the Apple Mac App Store, then open that file using MediaInfo. Do File>Export, export it as a .txt file, then upload here the same way as you did the EtreCheck file. It's not very big.

Also please try to play the file using Quicktime Player, going back and forth around the area 3:22. Using the JKL keys, press J and L to go forward/backward on the region. Do you see any black frames, dropped frames, digital noise on any frame, etc? Is there even a slight "hitch" in the playback around that area?

Is that a camera file? If so, what camera? Was the file downloaded from Youtube, captured from OBS or transcoded using FFmpeg or some other utility?

While the problem might not be the file itself, these are the standard things to check first.

I had a similar issue on one of my videos and used the time code given in the error pane. Stepping through frame by frame using the left and right arrow keys helped narrow down the issue to an effect that was mis behaving.