Yes, that could easily cause corruption of the project. Audacity requires exclusive access to the AUP3 file while the project is open. Unfortunately with cloud drives I don’t think it is possible to enforce exclusive access - the best we can do is to state in the manual
(Managing Audacity Projects - Audacity Manual):
You are > strongly > advised > NOT > to save your active project to an external USB stick/disk, networked storage or cloud storage