I really have no idea why individual compiler commands work in a CLI but not when PlatformIO invokes it. My first huch is always an interfering antivirus, but if you say there is none, then that can’t be.
Try a complete clean reinstall. First, remove the PlatformIO VSCode extension, close VSCode, remove the C:\Users\<user>\.platformio folder completely, then restart VSCode and install the PlatformIO extension.
Then try to create a new project again, but this one without spaces in the project name for safety reasons, and attempt to build it again.