Skydel Error - Unable to remove folder

I am trying to run a very basic test scenario in None mode, but keep getting this error. How do I clear it?

I have since found out that if I make a new folder that things work fine, but curious what could have caused this error

If you have a file open in that folder location and try to rerun the scenario that error will pop up. As soon as you close that file, the scenario should work again.