Why are the links and CSS formatting of the default blogdown new_site() broken?

I just installed the blogdown package and cannot get the new_site() to render correctly locally. My process was to create a new RStudio project with "Website using blogdown". According to (Yihui's book in section 1.2)[https://bookdown.org/yihui/blogdown/a-quick-example.html] it should render a basic hugo-lithium website.

However in my app the CSS and links are broken as in the picture below.

I've tried two different computers (both ubuntu), upgrading R from 3.4 to 3.6, and re-installing hugo. Do any blogdown fans out there have suggestions?

Thanks!

What's the output if you run blogdown::serve_site()?