Hmm…. just updated couple of sites to latest version of Yoast SEO, and ran into the same error.
In one case, there *was* a leftover google-sitemaps.xml file which had been there since Jan 2015. So, removed it, then still getting error in Yoast console:
The following file(s) is/are blocking your XML sitemaps from working properly:
/var/www/vhosts/MYSITEHERE.com/httpdocs/google-news-sitemap.xml
Either delete them (this can be done with the "Fix it" button) or disable Yoast SEO XML sitemaps.
However, when I actuallly go test the sitemaps, they do work.
Further, another site which still had the old competing plugin installed, disabled, and did *not* have that file also throwing the red ‘error’ box which cannot be ‘fix it’ fixed, nor is there actually a file there.
Odd. We have no caching plugins being used. Transients cleared. Latest version of WP.