Cannot Create Optimized Media

Hi! I am new to the forum and I recently realized I had an issue with creating optimized media in DaVinci Resolve 17. I can't generate optimized media, an error pops up (I can only see from the box size that "error encountered during optimized media generation. Ca") and disappears immediately so, I don't know the exact problem but it happens randomly, sometimes it doesn't even proceed and immediately I get an error and sometimes around %10-20 I get an error. I tried this with multiple projects and clips, although note that they are all .mkv files with two separate audio tracks in them (I recorded them that way through OBS). My settings for "Optimized Media and Render Generation" are as follows:

- Proxy media resolution: Choose automatically
- Proxy media format: DNxHR SQ
- Optimized media resolution: Choose automatically
- Optimized media format: DNxHR SQ
- Render cache format: DNxHR SQ

Also note that I changed "Working Folders" from default C: users/videos to an internal hdd and didn't create another folder for each (since Resolve does that automatically, though I tried creating another folder and putting all of them in that folder, which didn't work). Also I changed "Media Storage" to said internal HDD and didn't select any other folders in that. I also changed Video monitoring to 720p 60fps, Video depth to 8 and Monitor scaling to basic. As far as I can remember these are all the changes I made regarding optimized media. I experimented with all these settings but nothing seemed to work. Please help me with this issue since I have a fairly old system which without optimized media increases my work time even on simple edits by a lot. To help you helping me, I saw from a post from 2012 in which someone asked for logfiles, I created this log files from "CaptureLogs.bat" right after the error and I am sharing via WeTransfer and I am also uploading them to this post. Link to WeTransfer file:https://we.tl/t-zOxA3yPxL8

[Peter Chamberlain]

Please confirm, in preferences, system, edit storage, you have the C drive listed?
In the working folders, you have that same C drive listed?

if you power down and restart the computer, then resolve, these listings are still the same?

In system>storage I didn't have C because I changed it when I first realized the issue, I removed C and added D, but after reading your post I reverted it and added C and removed my hdd from the list. Then I changed the working folders to the same C drive. None of these worked, although it seems like it is working for %30 or so in random times each time, it just stops working. After power down and restart, settings are still the same. Note that there is 17gbs worth of data in Cacheclip, in C drive, (for a couple of minutes of HD footage), so it does create something but it never finishes. I started using proxy after creating this post, it works just fine but I just would like to know whether the issue is on my side, therefore would it have any effect on my future projects, or is it some sort of a bug that I shouldn't concern myself with.

An extra clarification I need is, as far as I read, there is no difference between proxy and optimized media (other than proxy having the advantage for multiple people working on the same project), is that correct?

Proxy doesn't (yet?) offer the option of Cineform, which is my preferred working codec.

And Proxies are a single file on the hard drive, whereas Optimized Media (all codec options) are actually stored as Image Sequences.

Those differences may not matter to you.