This error occurs when you try to install a plugin or theme on your site, but the file of that plugin or theme is already present in your WordPress site, due to which this error has to be faced.
If a folder with the same name already exists on your site, WordPress displays a message with the error,
Installation failed: Destination folder already exists.
This error can occur due to two reasons,
The previous file of WordPress Plugin or Theme is not completely deleted from your site.
Interruption in the previous installation due to which a destination folder is created.
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