Can't update Joomla - Infinite loop detected. File Checksum Failed
Issue
Cannot update Joomla 3.x. An update fails with the following messages:

ERROR:
Could not open archive part file .../path/to/tmp/...Joomla_3.10.1-Stable-Update_Package.zip for reading. Check that the file exists, is readable by the web server and is not in a directory made out of reach by chroot, open_basedir restrictions or any other restriction put in place by your host.

Warning
Joomla\CMS\Filesystem\Folder::create: Infinite loop detected. File Checksum Failed.
As a workaround, Joomla can still be updated manually by uploading the update file via the Upload & Update tab.