Error reading/writing from C: disk

No. Actually the error is unrelated to your drive. The “sqlite3.rc”: “11” error is an indication your project is corrupt, and it causes Audacity to shoot out your misleading message. See (11) SQLITE_CORRUPT here: Result and Error Codes. Perhaps the developers could display a more meaningful message.

To repair your project, see here: Corrupt or Otherwise Broken Audacity Project Recovery