This is the first exercise I am doing with the IDE as I read through and follow the book.
So welcome to the world of Lazarus!
After you have found a solution, it is a good idea to rename the thread, adding “[SOLVED]” in its beginning.
I am using Lazarus 3.2.2, but the IDE says Lazarus IDE v 3.4 at the top.
Most likely you are using FPC 3.2.2 and Lazarus IDE 3.4. FPC is the compiler, Lazarus is the editor, they are bundled, but they are actually two different things which work together.
As soon as I saw you ask if I paused my antivirus the light went off. I have to do that when compiling in the command prompt. I turned it off and the Lazarus IDE compiled with no problems.
Maybe you should report this issue to the AV developers, if possible.