To clarify my question about the UNC path... Is your source something like "\\servername\path\filename", or is it a local path like "d:\path\filename"? I've seen errors in the past where a file transfer object may not have the necessary credentials to access a particular UNC share, but it shouldn't be an issue if it's a local drive.
Actually, based on the direction of the slashes in your log, this is probably a unix agent rather than a windows one...
I still find it odd that it's reporting 'Files selected: '0''. I believe you when you say there are files there, but I'm suspicious that some permission issue is blocking the file transfer from being able to see them.
I'm similarly puzzled by the messages about the StatusStore file... Can you double-check to confirm the user you're executing this file transfer as (on the source server) has access to both the source file location as well as the agent's temp folder?
Can you also confirm that your agent binary is owned by root? (Recall the agent install steps about 'chown root ucxjlx6' and 'chmod 4755 ucxjlx6' (linux example).)