Well it seems like you might have a few small issues here.
Firstly I would look at how you created your new project and what folder that project is in to make sure you are definitely working in the correct directory.
Wappler creates a hidden folder at the root of the folder you choose for your project called .wappler and inside there are all your project and target settings, if it can not find that folder in the project target folder then it will throw this error.
Maybe look at this and the next document from that link, just to make sure.
If you still have the issue then please post a screenshot of you project settings and targets.
The SFTP issue might be related to this
Although by your screenshot i doubt it as it looks like you are on a mac, so it might also just be related to your project settings and targets you have set. As I say a screenshot of what you have entered there would greatly help.
EDIT: Just looking at the console log on your screenshot, and yes certainly a mac, secondly, is this drive you are connecting to a remote drive on another computer?
/Volumes/ Takes you to all your macs hard drives or mounted points.
/Library/ In your case sounds like you have a drive named Library
/Server/ I can only assume you are possibly running Mac OS X Server if I am not mistaken.
Assuming all I have said might be correct thus far, then your core site root folder will be /DRC/ and the only thing i see a little strange there is that if your webserver is case sensitive then you have an instance of DRC and another of drc so you might need to change that to whatever the folder is really called.