The problem is caused by invalid charater(s) in the file path of the PSoC Creator project, for example Chinese characters. Non-English characters are not supported in the file path with PSoC Creator. Use English characters for the file name and file path. In some cases while downloading a project from the website, the browser replaces a spac character with "%20". This will also result in the above error. Under this condition, rename the file replacing "%20" with spaces.