The last status I heard on FTP was this from two days ago:

Did I miss an important clue when upgrading?
Possibly this one, which was a bug found and fixed after Beta release.
Fixed problem with FTP backend not unescaping special characters

The folder Duplicati backup/Testbup
FTP (Alternative) path fails with spaces and other special characters #4587
was a previous now-fixed issue. I haven’t tested much this time, but I do get
C:\FTP\test%202
where the space in
test 2
became a%20
.

What should/can I do?
If this is your situation, you can try renaming the folder to match Duplicati use.
Using latest Canary test release is more drastic. ETA of next Beta is unknown.
Since NAS is probably Linux, a symbolic link might make it work in either case.