Hi again, thank you for your response. Yes Alex, the permissions inside the backups directory have permissions set for the intended user, screenshot as follows:

However, the etc/php/8.4/fpm/pool.d/shilaalekh.org.conf did not have correct permission and was under root:root which as per your instruction we changed to tskuser:www-data as shown below:

Also, I am a bit confused regarding the note you sent suggesting the backups directory location to be outside Apache scope. It currently resides within shilaleekh directory in the same level of httpdocs directory, did you mean it was wrong or is that okay ?
Regarding your instruction to ensure apache vhosts needs to point to httpdocs, we noticed previously the .conf file was pointing to httpdocs/dedalo which now we changed to only httpdocs, before/after screenshots as follows
BEFORE:

AFTER:

After all these changes when we tried the update code process again, we were met with a new error saying "max retries reached request failed" as shown in screenshot below

Also, we have both php 8.3 and 8.4, we also tried using 8.3 which would cause the initial problem of "move dir failed" while using 8.4 we got the above new error with max retries reached. We have made permission changes to the pool file in both versions as per your instruction.
Open to further suggestions to resolve this problem ahead.
Best Regards,