I was somehow able to work with the previous toolchain version (v2.7.0) but my application development needed an update to v2.8.0. I had previously been facing issues in installing the toolchain but it got fixed after a lot of attempts.
The issue is that when i try to install any toolchain version from the nrf Connect VS code extension, The extension downloads the toolchain, installs it and updates everything until the very end. But exits with an error which breaks the whole installation and the same happens with the SDK installation.