In a new posit session when opened the same project, I was able to activate the renv and create the Rprofile.

setwd("path/to/your/home/directory")  # Change to a directory where you have write access

# Activate renv
renv::activate()

file.create(".Rprofile")

After this the renv worked fine and I was also able to update the git repo.

# Restore the environment
renv::restore()