Out of curiosity, where can I find the usvfs_proxy.exe and how essential it is to my problem?
EDIT: Okay I am a genius, thank you for letting me see the logs. I was able to get it to work by copying usvfs_proxy.exe from an old MO installation to the new one because it was missing, and now it works fine. For anyone having issues, please make sure the usvfs_proxy.exe is in the root folder of your MO installation and then add an exception to usvfs_proxy.exe in your AV as well as firewall. Good luck. Please mark this thread as solved.
