I have the same issue. On initial startup is see the “ipfs” error. Once I close the app and reopen it I am asked for my passphrase. After entering it I am prompted with the migration screen.
3696 is the process id of what is using the port. To get the name of the executable we run the following:
Replace 3696 with the id your command above returned.
tasklist /fi "pid eq 3696"
This is the blocking application. Either change the port for the program if you can, remove the program, or report to Anytype that the port isn’t free for you.