Steam Tsw6 - Error Creating New Profile

Every time I try to play TSW6, the create a new profile section results in an error stating that it cannot create a new profile. I attempted to import my old one, and was greeted with "no memory available" despite having over 1TB of storage space available. I have also allowed TSW6 thru my firewall settings, and still cannot get past the first screen.

Strangely, it appears in my "MyGames" folder that TSW6 has failed to create its own folder.

 

I had the same issue (I also had it with TSW5). The way I solved it (the support article misses that a bit):
1. Disable controlled folder access (Section 3 in the article)
2. Set the game as an exception from Microsoft Defender