Ok, I managed to solve it. And “do the window” definitely was a red herring. It has got nothing to do with Windows. The main cause of the problem was that the latest version of Shopify/cli had a bug that caused this issue. (3.60.1 as of the time of writing)
For anyone looking for a solution on Windows 10, this is how I fixed it.
Uninstall Shopify CLI by running the command npm uninstall -g @Shopify_77 /cli @Shopify_77 /theme and then installing an older version of the Shopify CLI (3.51.1 worked for me) npm install -g @Shopify_77 /cli@3.51.1 @Shopify_77 /theme@3.51.1
Everything should work after the install. This took me a whole day to figure out what went wrong. I hope this helps.