Error message I'm getting:

Challenge Not yet complete... here's what's wrong: 
There was an unexpected error while verifying this challenge. Usually this is due to some pre-existing configuration or code in the challenge Org. We recommend using a new Developer Edition (DE) to check this challenge. If you're using a new DE and seeing this error, please post to the developer forums and reference error id: PSACFGLO

I tried integrating Salesforce with VS code.. I installed Salesforce CLI and when I tried creating a project in VS code but it says that Salesforce CLI is not installed.
 The exact error is

"14:48:25.402 sfdx force:project:create --projectname TestProject --outputdir d:\ --manifest
'sfdx' is not recognized as an internal or external command,
operable program or batch file.
14:48:25.492 sfdx force:project:create --projectname TestProject --outputdir d:\ --manifest ended with error spawn sfdx ENOENT
Salesforce CLI is not installed. Install it from https://developer.salesforce.com/tools/sfdxcli"

I keep getting an error on Item #4 "The custom set of fields that are highlighted on account records must be assigned to the required profile."

The requirement is asking for having highlights based on profiles, but as we know compact layouts are applied to the whole system not by profile.

I am not sure how to fix this, any help is appreciated.