You can try running sky serve on WSL (Windows Subsystem for Linux) instead of Native Windows. This might help resolve the file permission error. Here's how you can do it:

1. Install WSL by following the instructions on the <https://learn.microsoft.com/en-us/windows/wsl/install|WSL documentation>.
2. Open WSL and navigate to the directory where your service.yaml file is located.
3. Run sky serve up service.yaml command in WSL.

By running sky serve on WSL, you'll be able to avoid file permission issues that can occur on Native Windows.