Answer
This has been traced to a Windows file-extraction limitation tied to long file paths, particularly when the project is created inside a synced folder like OneDrive (which adds its own path prefix on top of an already-deep project structure). The fix is to create the project somewhere with a much shorter base path — for example, directly under the C: drive root rather than inside a deeply-nested OneDrive-synced folder — which keeps the full extracted path short enough for Windows to handle correctly during project creation.