I will post here what worked resolving this error for us, in case someone else in the future encounters this.
It turns out that this error appears in this case, when we were using the below command while the directory 'staging2' already exists. To avoid this error, the 'staging2' directory has to be deleted before attempting to use 'saveAsTextFile'.
rdd_processed.saveAsTextFile(path+'/staging2/')
The weird thing is that we were already doing that, but we would still get the error. We had a notebook cell that deletes the path ''path+'/staging2/'", and then on the next cell, the above command would run, giving the error.
It turns out, to address this, the delete command of the path has to be on the same exact cell as the 'saveAsText' line of code. When we put the code in the same cell, the error wouldn't show anymore and the saving of the rdd_processed was successful. This is definitely a bug as it doesn't make sense why it works, but for now at least there's a solution.