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Asking for the folder of the front document is (as far as I understand it) not going to be allowed by sandboxing.

If you can replace the commented-out line with a specific path, e.g.
set thePath to POSIX file "/Users/sam/Documents/ExportedGraffles"

that may work better. I haven't tested to see if

"~/Documents/ExportedGraffles" would work so that you can share it with other users.