Could not create directory. /var/www/html/wp-content/plugins/PLUGIN_NAME/

Usually it happens when apache dont have write permission on the server, can you upload images from wp-admin.
Plese try this.

  1. You can try give apache write permission as much as root on your server?

  2. To solve this issue you need to define the FTP details in your wp-config.php file so WordPress will remember it.

define('FS_METHOD', 'ftpext');
define('FTP_BASE', '/path/to/wordpress/');
define('FTP_CONTENT_DIR', '/path/to/wordpress/wp-content/');
define('FTP_PLUGIN_DIR ', '/path/to/wordpress/wp-content/plugins/');
define('FTP_PUBKEY', '/home/username/.ssh/id_rsa.pub');
define('FTP_PRIKEY', '/home/username/.ssh/id_rsa');
define('FTP_USER', 'username');
define('FTP_PASS', 'password');
define('FTP_HOST', 'ftp.example.org');
define('FTP_SSL', false);

https://codex.wordpress.org/Editing_wp-config.php#WordPress_Upgrade_Constants

  1. Alternatively, you may also provide WordPress with write access to your /wp-content folder by accessing the FTP root file and changing the folder file permission (CHMOD) to 775 rather than the default 755 and 644.