File restriction on server

In all new sites I create on Local there seems to be issues with uploading and editing images. When I upload images via Media Library, no copies are made for thumbs etc. Only original image is uploaded. When I try to edit files, it will not let me. This is Local version 5.3.3+3248. Mac OSX 10.15.4.
It’s tested on plain WP installation.
Please see attached.
Screenshot 2020-05-01 at 15.54.20

Is it just me with this problem?
Uploading images to Medial Library will not create duplicate thumb sizes. I can’t resize image in media library and other image resizing plugins fail. It’s the same for all new wordpress websites I create in Local version 5.4.1+3311.

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