Possible Solutions:
1) Change File Ownership
2) Change File Permissions
3) WordPress table “db-prefix_options”
Normally I check the file permissions for issues with access rights. However in this case the third option above was the correct solution when I was working on fixing this issue for someone else.
You may need to fix the file ownership and file permissions.
File Permissions of 777 will give full read and write access to the world. This is a security risk and should not be followed.
Correct setting for directories is 755 and files 644. However most likely even after you make this change you will still get the error “Unable to create directory uploads. Is its parent directory writable…”
One issue that I have found in older databases being upgraded to the latest version of WordPress may experience the error noted above.
Part of the problem comes from “Uploads Path” specified in the SQL database that value is no longer used by WordPress and if the Uploads Path exist in your database then you will get the error as defined above.
If you edit your database using PHPMyAdmin, select all tables, and then perform a search for “uploads path” — The string “uploads path” – Should be found in the wp_options table or “table-prefix_options” (whatever your table prefix is).
Once you find the uploads path you may see something similar to:
“/wp-content/uploads/”
If you empty the table content by deleting all the text in that table and save the settings.
uploads path should equal “”, or an empty string.
This should fix the problem with:
“Unable to create directory uploads/. Is its parent directory writable…”
I have fixed this issue with a number of people experiencing this exact same issue.