Cannot make new post. Using GeneratePress theme

I am using Generatepress theme and I cannot make a new post. It works on other panels but not here.
Additionally, the option to include Featured image (in wordpress new post panel) is not showing in Gutenberg blocks but for now I can add featured image in classic editor. Main issue is I cannot make a new post. It gives error:

Publishing failed. The response is not a valid JSON response.

Vhosts file:

GNU nano 6.2 vhost.conf
procHardLimit 500
}

phpIniOverride {
php_admin_value open_basedir “/tmp:$VH_ROOT”
}

module cache {
storagePath /usr/local/lsws/cachedata/$VH_NAME
}

rewrite {
enable 1
autoLoadHtaccess 1
}

context /.well-known/acme-challenge {
location /usr/local/lsws/Example/html/.well-known/acme-challenge
allowBrowse 1

rewrite {
enable 0
}
addDefaultCharset off

phpIniOverride {

}
}
Current Version:
2.3
Build:
4
Current Commit:
d65b6b5bcd4e89ce1a0eeb74131f98093e85bb3a
Latest Version:
2.3
Latest Build:
4
Latest Commit:
d65b6b5bcd4e89ce1a0eeb74131f98093e85bb3a

No rewrite rules made

Main error log file of cyberpanel is attached as image as i cannot post links

Forgot to mention that I am using latest version of GeneratePress Theme Version: 3.3.1

It is a test site, so no worries about the password etc.

Watching for a reply since past 3 hours guys. Need the fix. I am sure there should be something added in the vhost.conf file located on /usr/local/lsws/conf/vhosts/

https://www.youtube.com/watch?v=NAUJVqm5iD0&t=322s shows the issue solved on cloudpanel but the vhosts file on cyberpanel is looking very different.

There is no need to edit vhosts file. No need to use classic editor or additional plugins.
Just changing perma links settings to and fro solved the issue.
Go to Settings >> Permalinks >> Choose numeric or plain and click Save.
Issue gets solved as the vhosts file gets written automatically.
Then you can test and just select your preferred permalinks back again.
Example:

Actually vhosts file has to be edited but if you cannot locate it or do not want to risk editing it, then you can change permalinks type, then make new post, it might take you 2 to 3 attempts to publish in this way, then after post is published, you can change the permalinks type back to the way you want.