1) You are exporting to the wrong folder. You can specify where the exported files are placed. Choose some other folder preferably outside your USER <id> folder.
2) That folder, Application Data, doesn't really exist anymore in Win 7/8/10. It is a legacy Linked/OS Shortcut (I forget the actual naming for these type of linked/shortcut entries) for older program that are supposed to use to store data. It is really pointing at AppData which MS does like the user to have access to.
I've specified a path where to export images in the export panel, and is is not the user's speace. Unless LR is trying to write its "systems" items to the folder that is MS enforced one and LR has no write permissions.
Yes, that's exactly how I specify the directory where I want to export my pictures.
But I took a different route (a work jaround) to resolve this issue - since I have a functional LR6 on another system, I decided to rename the old Lightroom located on my laptop in the default location "C:\users\<id>\Local Settings\Application dat" on my laptop. I copied the Lightroom folder form the functional system over and tested it. It appears that this approach worked, I finally got the export functionality to work.
Thanks everyone for pithching in ideas how to solve the issue.