The issue occurs when launching OBS Studio in Portable mode on MacOS.
I couldn't find a complete resource on how to launch OBS in portable mode on MacOS, however after researching through forums I was able to launch OBS from the terminal with the following line:
/Applications/OBS.app/Contents/MacOS/obs --studio-mode
However when I try to add the '-p' parameter as described here:
/Applications/OBS.app/Contents/MacOS/obs -p --studio-mode
I get prompted with an error window containing this error:
Failed to create directory ../config/obs-studio/basic