Hi,
This looks like a glitch with the Espressif’s servers. We have just tried doing a clean installation of the latest ESP32 package, and it worked out-of-the-box without any problems.
Please try fully resetting your Arduino packages by deleting the root directories (we recommend checking the locations via Tools->VisualGDB->Manage VisualGDB Packages->Arduino and MANUALLY deleting the root directories (e.g. C:\Users\<user>\Documents\ArduinoData) to ensure there are absolutely no leftovers left).
The error message also looks a bit off. Normally, VisualGDB should handle the path-too-long errors and just show a summary of the files it could not install. You can try enabling View->Other Windows->VisualGDB Diagnostics Console before you reinstall the packages, and then check if it contains more details (e.g. each path and a stack trace for the exception).