Dropbox only receives complete files; thus UpdraftPlus (and any/every other plugin) has to prepare the zip file using local storage before it can despatch the zip file to Dropbox. So, you need enough storage to temporarily store the zip file before it is despatched. More info is in this FAQ: https://updraftplus.com/faqs/how-much-free-disk-space-do-i-need-to-create-a-backup/
Best wishes,
David
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