Having issue with Making Lightning Web Components in VS Code?

https://trailhead.salesforce.com/content/learn/projects/get-started-with-salesforce-development

Hey everyone - I'm having an issue creating Lightning Web Components in VSCode for the final unit of the Get started with salesforce development project. The unit I am specifically stuck on is called - Build a Reusable UI Component with Lightning Web Components.

For some very odd reason, I cannot actually make a Lightning Web Component. I get a very odd error message whenever I run the SFDX: Create a Lightning Web Component command (whether typing it into the VSCode terminal or using the command palette) saying that it cannot happen as it's missing the Aura Component Root Folder/Files. Then, after moving the LWC folder into the Aura component folder of my project and re-running the command - I do end up with some sort of interactive component; but I don't think I end up with a LWC like I expected - as I don't get the necessary html, javascript, metadata xml and test.js file necessary for me to make modifications to those files as set out in the exercise. Is there any way to explain & correct this error?