rstudio server instal on ubuntu does not create home directory /home/rstudio-server

I tried installing rstudio server in three different ubuntu versions. 20, 18 and now 16.
I read in one of your support threads that rstudio is not yet supported on ubuntu 20. So I launched another AWS instance with ubuntu 18 but here I was unable to instal R 4.0 (it was only installing R 3.4 as latest version) so I further went down to ubuntiu 16.04.

In ubuntu 16.04, everything went smooth:

sudo apt-get install r-base
sudo apt-get install gdebi-core
wget https://download2.rstudio.org/server/xenial/amd64/rstudio-server-1.3.959-amd64.deb
sudo gdebi rstudio-server-1.3.959-amd64.deb

Got this confirmation:

Setting up rstudio-server (1.3.959) ...

Created symlink from /etc/systemd/system/multi-user.target.wants/rstudio-server.service to /lib/systemd/system/rstudio-server.service.

rstudio-server.service - RStudio Server

Loaded: loaded (/lib/systemd/system/rstudio-server.service; enabled; vendor preset: enabled)

Active: active (running) since Sun 2020-06-14 18:19:02 UTC; 1s ago
Created symlink from /etc/systemd/system/multi-user.target.wants/rstudio-server.service to /lib/systemd/system/rstudio-server.service.

I also see that a new entry of rstudio-server is created in /etc/password

rstudio-server:x:999:999::/home/rstudio-server:

But the rstudio server is still not active.
sudo rstudio-server verify-installation

14 Jun 2020 18:27:54 [rsession-rstudio-server] ERROR system error 13 (Permission denied) [path: /home/rstudio-server/.config/rstudio, target-dir: ]; OCCURRED AT rstudio::core::Error rstudio::core::FilePath::createDirectory(const string&) const src/cpp/shared_core/FilePath.cpp:634; LOGGED FROM: rstudio::core::Error rstudio::session::prefs::initializePrefs() src/cpp/session/prefs/UserPrefs.cpp:142

14 Jun 2020 18:27:54 [rsession-rstudio-server] ERROR system error 13 (Permission denied) [path: /home/rstudio-server/.config/rstudio/dictionaries/custom, target-dir: ]; OCCURRED AT rstudio::core::Error rstudio::core::FilePath::createDirectory(const string&) const src/cpp/shared_core/FilePath.cpp:634; LOGGED FROM: rstudio::core::Error rstudio::core::spelling::HunspellDictionaryManager::availableLanguages(std::vectorrstudio::core::spelling::HunspellDictionary*) const src/cpp/core/spelling/HunspellDictionaryManager.cpp:158

14 Jun 2020 18:27:54 [rsession-rstudio-server] ERROR system error 13 (Permission denied) [path: /home/rstudio-server/.config/rstudio/dictionaries/custom, target-dir: ]; OCCURRED AT rstudio::core::Error rstudio::core::FilePath::createDirectory(const string&) const src/cpp/shared_core/FilePath.cpp:634; LOGGED FROM: std::vector<std::__cxx11::basic_string > rstudio::core::spelling::HunspellCustomDictionaries::dictionaries() const src/cpp/core/spelling/HunspellCustomDictionaries.cpp:33

Same problem seen here

On investigating further I see there is no /home/rstudio-server created.

How should I proceed? Have I missed any major step that caused the home path missing even while the server is installed and the /etc/passwd file is updated by the rstudio-server user line?

Why is the home path missing?
Needless to mention the rstudio server cannot yet be accessed by the
<ip address: 8787> url on the browser.

Small Update:
The error messages seem to have changed today when I ran rstudio-server verify installation. The error points to permissions of a file named revocation-list. See below.

**sm@ip-172-31-18-106** : **~** $ rstudio-server verify-installation

**==== AUTHENTICATING FOR org.freedesktop.systemd1.manage-units ===**

Authentication is required to stop 'rstudio-server.service'.

Multiple identities can be used for authentication:

 1. Ubuntu (ubuntu)

 2. SANJAY MEHROTRA,,,+9180XXXXXXX (sm)

Choose identity to authenticate as (1-2): 2

Password: 

**==== AUTHENTICATION COMPLETE ===**

15 Jun 2020 06:32:05 [rserver] ERROR system error 1 (Operation not permitted) [path: /var/run/rstudio-server/revocation-list, description: Could not set revocation file permissions to 600 for file: /var/run/rstudio-server/revocation-list]; OCCURRED AT rstudio::core::Error rstudio::core::system::changeFileMode(const rstudio::core::FilePath&, mode_t) src/cpp/server/ServerMain.cpp:62; LOGGED FROM: rstudio::core::Error rstudio::server::auth::handler::initialize() src/cpp/server/auth/ServerAuthHandler.cpp:531

15 Jun 2020 06:32:05 [rserver] ERROR Could not read revocation list; LOGGED FROM: rstudio::core::Error rstudio::server::auth::handler::initialize() src/cpp/server/auth/ServerAuthHandler.cpp:539

15 Jun 2020 06:32:05 [rserver] ERROR system error 2 (No such file or directory) [path: /var/run/rstudio-server/revocation-list]; OCCURRED AT rstudio::core::Error rstudio::core::FilePath::openForRead(std::shared_ptr<std::basic_istream<char> >&) const src/cpp/shared_core/FilePath.cpp:1150; LOGGED FROM: int main(int, char* const*) src/cpp/server/ServerMain.cpp:674

**sm@ip-172-31-18-106** : **~** $ ls -l /var/run/rstudio-server/revocation-list 

-rw------- 1 rstudio-server rstudio-server 0 Jun 14 18:27 /var/run/rstudio-server/revocation-list

A few more details of the installed rstudio server.

**sm@ip-172-31-18-106** : **/home/ubuntu** $ rstudio-server version

1.3.959 (Middlemist Red) for Ubuntu Xenial

**sm@ip-172-31-18-106** : **/home/ubuntu** $ rstudio-server status

● rstudio-server.service - RStudio Server

Loaded: loaded (/lib/systemd/system/rstudio-server.service; enabled; vendor preset: enabled)

Active: inactive (dead) since Sun 2020-06-14 18:27:51 UTC; 13h ago

 Main PID: 26398

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