Have just encountered this today. For some reason my firewall has disabled some components for no reason. Have enabled this but no luck. Have also reinstalled it.
Will try on my laptop later
Please follow the status of this recent issue here: [FIXED] The latest version of Epic Launcher blocks the ability to perform Datasmith imports - Datasmith - Unreal Engine Forums
Thank you.
Tried it today with the same settings and files and it worked perfectly. Thanks for the quick fix guys.