Hi @aamzahid,
thanks for your testing and the reply. I also worked on the problem and it was on my side. With the latest update you seem to be switched from using PHP functions to read files from the dist to using WP_FILESYSTEM.
This wasn’t initialized correctly in my case. I found the solution here, where the following is mentioned:
When determining how to best read/write to files, WordPress will write a dummy file to the wp-content dir. It will then check to see if the file owner of the newly created file (which should be the user that the webserver is running as) matches the file owner of the wp-admin/includes/file.php
file. If they don’t match, then WordPress tries to access everything via ftp or something similar instead of just reading/writing to the filesystem directly. Would you be able to check if this is the case in your install?
In my case wp-content was not writable, so wordpress failed to perform the above check. I fixed this and now everything works fine.
Thanks for the support here and many greetings
Mathias