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In my case, the solution is very simple: I change temp path from "public_html/tmp" to "/tmp", and it fixes it.
If Joomla only has 'Public permissions' and not 'Ownership permissions' then it is dangerous to alter the 'Public permissions' to get it to work properly.
Turns out Plesk defaulted to Safe Mode on and therefore this caused the JFolder::create: Could not create directory. Permissions, ownership, clearing temp directories, nothing worked. I tried everything, debug mode, owned by Apache, root, 777 everything, nothing worked.
safe mode was the issue and it was easily missed since we didn't do an install. We simply moved the site and created new databases.
I went in through FTP and edited the configuration.php file (back it up first!) to point the temp directory to /tmp. (I stripped out the leading path and left only /tmp.)
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