QGIS » QGIS Application

When running the Menu "Raster" --> "Conversion" --> "Polygonize (raster to vector)" command, which internally uses "gdal_polygonize" the algorithm fails with the following error message:

Processing algorithm...
Algorithm 'Polygonize (raster to vector)' starting...
Input parameters:
{ 'INPUT' : 'C:/temp/dtm_extract_test.tif', 'BAND' : 1, 'FIELD' : 'DN', 'EIGHT_CONNECTEDNESS' : True, 'OUTPUT' : 'C:/temp/test_hs.shp' }

GDAL command:
cmd.exe /C gdal_polygonize.bat C:/temp/dtm_extract_test.tif "C:/temp/test_hs.shp" -8 -b 1 -f "ESRI Shapefile" None DN
GDAL command output:
File "C:\Program Files\OSGEO4~1\apps\Python36\lib\site.py", line 177 
file=sys.stderr) 
^ 
SyntaxError: invalid syntax 
Execution completed in 0.19 seconds
Results:
{'OUTPUT': <QgsProcessingOutputLayerDefinition {'sink':C:/temp/test_hs.shp, 'createOptions': {'fileEncoding': 'UTF-8'}}>}

Loading resulting layers
The following layers were not correctly generated.
C:/temp/test_hs.shp
You can check the 'Log Messages Panel' in QGIS main window to find more information about the execution of the algorithm.

See also the screenshot attached for the same error message in a screenshot.