Errors encountered when perfoming Airgap installation of plugins

I was trying to install the “Knime AI Extension” under the KNIME Lab Extensions in an airgap env. So i followed the instructions to download the “KNIME Analytics Platform Update Site” archive and loaded it as a archive zip file for extension installation.

I encountered further errors and i have also perfomed this step Create a New Python based KNIME Extension of the offline installation of python extensions and setup the environment variable KNIMEPYTHONPACKAGEREPOURL to the folder with the downloaded packages.

When i try to install the “Knime AI Extension” under the KNIME Lab Extensions using the archive file method i still get the following errors. Any advice?

I thought this is a local install method, from the error code it seems like during the installation its still trying to reach out to the internet to download something.