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Until recently, I was able to add shared folders to My Drive using the Shift + Z shortcut, but now every time I try to do it, these two messages appear:

FolderName has been added to "My Drive".
The server encountered an error. Please try again later.

I know I could add a shortcut of the shared folder to Drive, but I would like to leave that as a last resort.

How can this problem be solved?

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I think that is a problem on the Google side, so as the message suggests, wait an try again later. In the mean time you could submit your feedback directly to Google. On Google Drive on the web click the ? button then Send feedback, fill out the form and submit it.


Related official blog article: Expanding shortcuts in Google Drive, reducing unorganized files

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You can use add "shortcut to my drive". It does the same thing. But if you are a "Backup and Sync" user and want those folders to appear and even be reachable in your PC when you go offline you can go ahead and uninstall your "Backup and Sync" client and use the "Drive for Desktop" client instead. I don't know why Google tries to hide it into the deep partition of its website but it is a way too underrated tool that can do literally everything "Backup and Sync" can do and way much more.

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