I just tried almost the same command on Windows 10 and it worked:
particle library create --name testlib1
Make sure you’re running the command from an empty directory that will be the library source directory. The name of the directory should match the --name parameter. Also that directory and any directory above it should not contain spaces.
The -v option may also help provide better debugging.
You don’t actually need to use particle library create, however. All it does is create the examples, library.properties, LICENSE, README.md, and src directories in the current directory. You can just create them manually.