Well once again I posted too soon and figured out the solution shortly after. What worked for me was adding this to my wp-config.php
file:
define('FS_METHOD', 'ftpsockets');
The above line tries to force WordPress to use the PHP Sockets class when working with the filesystem – updating, installing etc.
For security concerns on shared hosting you should not store your FTP username and password in your wp-config.php
file. So REMOVE these lines asap in case you are using them:
define("FTP_USER", "ftp_username"); // Substituted by real values obviously
define("FTP_PASS", "ftp_passs");
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