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So this looks like a permission issue. It will be fine via Alteryx Designer because the user you are running the workflow through in Designer has access to the location you're accessing through the Dynamic tool.
Can you check if the user account you are running via on Alteryx Server, has access to that path / location?
I got it to work by installing v.3.1 of the tool. In my Designer (2019.2), I have to right-click in the Toolbar (toward the top of the screen, under the "Collections" buttons) and choose "show depreciated tools" so that the old version shows up, but then I can add the working depreciated tool to my workflow.
Please "star" the product idea I added to the Server Community: