I ran into a similar error and spent a couple of hours debugging it. Apparently, Hydrogen creates some virtual routes wherever it can in order to run the dev server. I tweaked the node_modules and discovered that, by default, it tries to use a path like C:\Users\Users\.... This might be related to the OS—I’m not entirely sure. The workaround was simple: run the CLI with administrator permissions, because the user folder is locked by default.