Update: With chunk size set to 256, I could upload a file sized 2.7GB.
So far this has been working.
Edit, this still kept failing for the original file of size 3.19 GB.
I was able to solve that by using
--drive-chunk-size=512M \
--drive-pacer-burst=195 \
--drive-pacer-min-sleep=20000ms \
After just --drive-chunk-size=512M did not work.
My plan is to see if it causes any problems for download speeds. If not, I will just keep it as it is.
Else, I will wait for a week with this config to let Google Drive rate limiting to calm down.