You were right, the problem had to do with privileges. I fixed it by changing the directory of WordPress.
https://community.apachefriends.org/f/viewtopic.php?f=16&t=57303&p=211993&hilit=wordpress+permalink#p211993
Thank you.
Thanks for the response. I have Xampp running as admin. This problem still happens after I do a clean install of wordpress then press save changes on the permalink page.
