The server does not have enough free space to unpack the archive and extract the files in it.
This can be resolved by deleting some of your files on the server or by contacting the hosting provider to request that they add more storage space.
If you are using “Unlimited” storage offered by some hosting providers, this is often the problem.
Unlimited plans do not in fact give an infinite amount of storage. Different hosts have different limits on storage and the plugin will not work if you are out of space.
Beware of the “unlimited” marketing trap.