This is the most common cause. If your drive (where MO2's base directory or mods folder is located) has less free space than the mod requires after extraction, the process will fail mid-way.
from the official GitHub releases page.
Ensure the drive containing your MO2 temporary folders has at least double the free space of the mod size you are trying to install. mo2 extraction failed data error exclusive
Follow these sequential fixes to resolve the extraction failure and restore your staging environment. Fix 1: Clear Drive Space and Adjust Drive Paths This is the most common cause