Visual Studio Publish: unable to authenticate with Static Web App

**Are you accessing the CLI from the default port `:4280` ?**

- [ ] No, I am using a different port number (`--port`) and accessing the CLI from that port
- [ ] Yes, I am accessing the CLI from port `:4280`
- [x] I have no idea, I am using Visual Studio publish interface

> Make sure you are accessing the URL printed in the console when running `swa start`!

✅

**ℹ️ NOTE: Make sure to enable debug logs when running any `swa` commands using `--verbose=silly`**

**Describe the bug**
I am trying to publish the app using Visual Studio publish feature.

After logging in with device code I get:
```
✔ Successfully logged into Azure!
- Failed to setup project: EPERM: operation not permitted, open 'C:\Windows\System32\.env'
- If you believe this behavior is unexpected, please raise a GitHub issue at:
https://github.com/Azure/static-web-apps-cli/issues/new/choose
Unable to authenticate with Static Web App 'BlazorPlayground'.
```

**To Reproduce**
Steps to reproduce the behavior:

1. Clone https://github.com/microsoftgraph/msgraph-sample-blazor-clientside.git
2. Open GraphSample project
3. Right click it, and click Publish...
4. Create new profile and specify your Azure Static Web App
5. Hit Publish
6. Enter device code to the browser window

**Expected behavior**
App should publish

**Desktop (please complete the following information):**

- OS: Windows 11
- Version: 22H2

**Additional context**
NodeJS version: 18 LTS