While I was testing the build 353 of RStudio IDE on my windows machine (I extracted from a zip file), I was getting a similar error as described in the following post
After spending a few hours trying to figure out how to solve the issue, I ended up landing on the folder
This folder hosts the "execute.R" script that contains the "execute" function associated with the render button that triggers generation of PDF output. Line 12
oldwd <- setwd(dirname(rmarkdown:::abs_path(input)))
Displays content very similar to the error message I was getting on the Background Jobs panel. Then, I decided to comment out line 12 and inserted the following line right after it
oldwd <- setwd(getwd())
After saving the "execute .R" script and re-running my quarto document, I was finally able to generate PDF output.
I hope this helps other users facing a similar issue and suggest a fairly easy to do change in the RStudio IDE Zip file published by posit.
Thank you very much.