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Well, I did format my drive through Disk Utility in Recovery and then reinstalled macOS and recovered my back up and it finally solved the problem. Things are now installing properly.

Thanks for all the help, I really appreciate it!
No problem! Sorry you had to do an erase install.
 
Hmm that looks weird. ls -l /System/Volumes/Data/private looks like this for me:
Code:
drwxr-xr-x  116 root  wheel  3712 May  1 00:58 etc
drwxr-xr-x    2 root  wheel    64 Nov  9 11:38 tftpboot
drwxrwxrwt    5 root  wheel   160 May  7 18:21 tmp
drwxr-xr-x   28 root  wheel   896 Apr  5 22:55 var

It seems that your /System/Volumes/Data/private/tmp (which is supposed to be the temporary directory, is itself a symbolic link).

Try this:
Code:
sudo rm /System/Volumes/Data/private/tmp
sudo mkdir /System/Volumes/Data/private/tmp
sudo chmod 1777 /System/Volumes/Data/private/tmp

Then reboot. Then try ls -l /System/Volumes/Data/private and file /private/tmp /tmp again.
Code:
sudo rm /System/Volumes/Data/private/tmp
sudo mkdir /System/Volumes/Data/private/tmp
sudo chmod 1777 /System/Volumes/Data/private/tmp

Thank you! This fixed this error for me on Catalina 10.15.7. (disabled csr in recovery mode beforehand)
 
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