For the original bug report, see https://github.com/vuejs/vue-cli/issues/681
One thing we can immediately improve is the error handling. This error is not "fatal" - all people have to do is run npm install themselves. So I will add a nice error message explaining that to users.
As to the original source of the problem, I'm a bit dumbfounded for the moment.
When you then elect to have scaffolding restore your packages (whether through npm or yarn), you are not in the project directory, but above it, so the package install/restore command fails
That would be weird - being in the wrong directory should lead to an error on OSX as well, but doesn't (for me).
I also think I set the cwd for the npm call to the right directory here:
https://github.com/vuejs-templates/webpack/blob/develop/meta.js#L155-L158
So it seems The solution was actually pretty simple - something got lost in a merge/rebase.
could any of you run this and test it out?
vue init webpack#develop
@LinusBorg fix works for me, thanks!

@LinusBorg Solved the problem by using cmd "vue init webpack#develop", Thank you!
The fix is now available though the normal command as well.
it work fine on windows 10 by using
vue init webpack
THX
Thanks for testing and reporting back!