WFFM sitecore module installation - bin\System.Data.SQLite.x32 access denied

I'm trying to install the WFFM module for sitecore, After the installation is complete and the placeholder settings are provided i get the following error

Access to the path 'C:\Inetpub\wwwroot\XXXXX\Website\bin\System.Data.SQLite.x32' is denied

So the WFFM database is not created under web root /data folder (I guess)

I'm having hard time understanding the issue.