Tried to create an AVD from the eclipse environment in the following steps:
My problem was solved by freeing disk space.
I had some 2 GB free, and noticed that after closing the Add Virtual Device window there was a red notification on the top-right corner of Android Studio
.
Clicked it, and it showed a log message stating freeing disk space was required
.
I did it, and next time I tried adding a virtual device, it worked.