Phone system image not found

Using Processing 4.3.4.
Android SDK 33 is located at C:\Users\myname\AppData\Local\Android\Sdk.
I checked preferences.txt with the android path pointing to the correct location:

android.gradle_plugin=7.1.0
android.sdk.appcompat=1.6.0
android.sdk.ar=1.37.0
android.sdk.gvr=1.180.0
android.sdk.path=C:\Users\myname\AppData\Local\Android\Sdk
android.sdk.play_services=18.0.0
android.sdk.target=33

Under Android Studio emulator is working. I am able to start it from Android Studio-Virtual Device Manager and command line too.

Problem:
Everytime I click Run in Emulator the IDE shows an alert: The system image needed by the emulator does not appear to be installed. Do you want Processing to download and install it now?

Even though I click Yes to let Processing to download and install it the emulator is not started.

Any idea how to fix it?

However, I was able to run the application on a real smart phone with a USB connection. But emulator never work after a whole day persistent tests. Please help.