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Error in Initial Processing Step

[Error]: Failed to write to <E:/AlluvialFan_June/12June20_AF_FUR2/1_initial/project_data/thumbnails/IX-02-72567_0041_1359_512.jpg

[Warning]: Warning w9020: GDAL Error <4> Unable to create jpeg file E:/AlluvialFan_June/12June20_AF_FUR2/1_initial/project_data/thumbnails/IX-02-72567_0041_1360_512.jpg.

What does this mean? Will this impact the completion of Step 1 and subsequent steps?

Thanks for the help.

could you please share with us the entire log file (you can upload it directly in your post)?
Does the processing stop?

It seems that there is an issue when the software is trying to write files on the disk. Are you working on an external disk (disk E)?