After using "Clip Layer (Geoanalytics Desktop Tools)" tool several times without a problem, I started getting the following error message: ERROR 001409: Failed to write to the output location. Failed to execute (ClipLayer).
My cursory web search on Error 001409 has not yielded any solution. I changed the save location and name of the output feature class (i.e. I used shorter names) which didn't solve the problem.
Attached is the screen capture of the error message.
I would suggest trying again, but saving it locally e.g. on your desktop or C: drive, to test that it works, versus One Drive.
You also have spaces in your filepath, which can cause issues.