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I was trying to Configure Log shipping through SSMS (SQL server Management Studio) in between Failover Cluster Instance (Principal Server) and Standalone (Secondary Server), Once I click OK button to finish the Log Shipping configuration, Backup on Primary completed successfully but for Restore to secondary it throws error. I am using existing Drives with required Permissions granted.

Error message: enter image description here

It means I need to Create a separate folder and assign permissions?

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To summarize what we hashed out in the comments, yes, you will first need to setup a file share with proper permissions as part of the Prerequisites outlined in the Configure Log Shipping Guide provided by Microsoft.

Once you have the fileshare created, you should be able to connect to it using a UNC path similar to \\servername\sharedFolder

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