Update failed: Could not create the upgrade-temp-backup directory.

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Hello, I am getting a strange error in production when trying to update my plugins. The issue appears to be with creating some temporary directory. The error appears inline on the plugin page when clicking to update:

Update failed: Could not create the upgrade-temp-backup directory.

I have tired to change the owner of the ./plugins folder, as well as the permissions from 775 and 777. Nothing so far is working. Where is this upgrade-temp-backup directory being created?

Is this a new feature with WordPress 6.3?

The page I need help with: [log in to see the link]

 

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