Tags cannot be changed if one item contains another

Trying to change tags for multiple Finder items throws error -8076 if one item is the enclosing folder of another.

OS version 10.14.3

This is most likely not TotalFinder related. It must be a Finder issue.

There is a bunch of people on the internet having weird issues with -8076 error:
https://www.google.com/search?q=finder+"-8076"&oq=finder