Extremely mysterious behavior of the disappearing .bbl file when compiling using TexStudio, no idea what could be causing this!

My .bbl file completely gets wiped out every time I compile. What could be causing this extremely weird behavior?

Steps that seems to reproduce this error:

1. Compile a .tex file stored in Path 1, call it A.tex

2. Compile a .tex file stored in Path 2, call it B.tex

3. Compile A.tex again.

4. A.bbl has been wiped out. Empty. Nil. Zilch.

Here is the error message immediately after I perform 3.

Note that A.tex and B.tex are literally random tex file that I downloaded from Arxiv! I could reproduce with arbitrary files A, B that I find and download from Arix, and even default templates that I find online.

What on earth could be causing this? It is extremely expensive and time consuming to replace a .bbl file.

Some other error message that seems to be helpful: