I have the same issue here. I don’t understand what FTP has to do with this? When I upload the theme ZIP file I can see it appear in the file system when I log in to a shell. Why does it want to invoke an FTP service? It doesn’t make sense. The file is right there on the server, no need for FTP.
I run my own servers and I do not run an FTP service. How do you upload a theme without being forced to go through an FTP upload afterwards?
Another thing I noticed with this is when I do upload a theme zip file I can see on my dashboard that I’ve used 13% of my default 10Mb of space. However, I can not see the file anywhere in the admin back-end. I would expect it to appear in the Media library. When I delete it manually from the file system the usage goes back down to 0%. What’s going on with this?
Any help much appreciated.