This is a known issue with Firebase CLI 3.17.0, at least 3.17.3, but only on Windows. You can fix this on your computer by editing firebase.json in the root of your project and replacing $RESOURCE_DIR with %RESOURCE_DIR% in the npm commands that you see there. The former is the unix syntax method for using the environment variable, while the latter is the Windows command line command line syntax. Since you are using Windows, you need to use Windows syntax.
The team is looking for ways to prevent making changes to the configuration files that you use, since platform-based commands are not very convenient for modifying the same file.
EDIT: This problem should be fixed using projects created using the CLI version 3.17.5.
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