CivicRM 5.60 installation on WordPress 6.2 in Local 6.7.0 fails

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I am trying to install CivicRM for WordPress site in Local environment. I unzip the CivicRM (5.60), I place the folder into app/public/wp-content/plugins/ folder. I see the plugin in WP admin interface. I click activate, install starts, but it fails shortly after and the whole WP site becomes unusable.

PHP: 8.0.22 MySQL: 8.0.16 WP: 6.2 webserver: nginx

wordpress after failed civicrm install WP backend after failed civicrm install

I tried to run the install a couple of times with different PHP, MySQL and webserver settings in Local, no change.

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