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Why can't I install plugins on my local wordpress site?

I am using a custom setup:

PHP Version: 7.3.5
MySQL Version: 8.0.16
Wordpress Version: 5.4.1

I can’t install any plugins, it returns the error “Installation failed: Could not create directory”.
I am using flatsome theme and no other plugins. I have another site on the same computer with the same setup and can install plugins. I am using Windows 10 as my OS. I have checked the permissions of the folders and they are all writable. What can I do to fix this?