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I just solved my problem today. (With the correct selection of "File Transfers: Transfers files to Windows or Mac (MTP)")
Error message: "this requires resources in use"
Solution:
When you open windows explorer you will get two panes close right side pane that is call preview pane and try close the "Preview Pane"
(Window Explorer - View- untick "Preview Pane") now the problem should be resolved.
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