Okay . there seems to be a folder permissions issue. I would open up the folder "C:\Users\That-\OneDrive\Documents\CraftersLand Launcher" and right click on the "instances" folder and go to properties and check the folder security. make sure its not Write Protected, and if its not, what i do because windows folder security aggravates me is, add a new "group or user" called "everyone" and then give it full access. that will be just for that folder "instances" and any folder inside it. that gives java the ability to access it in the easiest way lol but i urge you go read something like this to learn more about it.
https://www.online-tech-tips.com/computer-tips/set-file-folder-permissions-windows/
let me know if that works. sorry couldnt remove the stupid spoiler lol