I'm using mingw.
$ sed -i "s/a/b/" test.txt sed: preserving permissions for `./sed003480': Permission denied
I can touch/rm files in current dir.
It's caused by Windows security settings.
Open the folder's Properties settings from the context menu. In the Security tab, click Edit, press Add... in the pop-up window and add your user to the list, check Full Control in the Allow column. Press OK twice to apply the changes.
For me, folder was read only. unchecking readonly option fix my problem. Thanks to Zenadix commment
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