Update Failed: Could not create directory.

If for some reasons, this new server does not like auto updating, then consider doing it manually?: https://codex.www.ads-software.com/Managing_Plugins#Manual_Plugin_Installation

yes I know it could be done via ftp but just strange its not working. like to know what has change or been missed. auto update is so much easier.

yes I know it could be done via ftp but just strange its not working

Try contacting your hosting provider and ask them it’s so.

This not the default behavior of the WordPress core.