Actually, the naming issue was the problem. Did a few test after changing the theme name and theme folder name that didn’t pan out, but all I did was add “theme” at the end so I noticed the error was slightly different.
Instead of:
“ERROR: The theme directory “mytheme/test” does not exist”
It was:
“ERROR: The theme directory “mytheme/testtheme” does not exist”
Once i completely changed the name I no longer had any issues.