What is wrong with Agent file uploading?

I have difficulty uploading files to my agent. I constantly get this error message:

"Parsing file failed file content is more than size limit. 500 000".

I have tried uploading . txt and .PDF files. that are as small as one MB but I get this same error message.

I have received this error message dozens of times. This is frustrating and renders my agent useless.

Please advise. Thank you, Kevin.