MySQL database fails to install when I try to create new custom site

Thanks @Chris_Renshaw, are you seeing this line in your logs:
[Warning] Access denied for user 'root'@'localhost' (using password: YES)

You can also private message the main.log to me and upload it as an attachment.
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My solution in the above thread should work in every case. It’s very hard to tell why this occurs for certain users but if you can share the main.log, I’ll ask our developers to review it as well.