Install Zephyr and Zephyr SDK and set the environment variable ZEPHYR_BASE to the path of the Zephyr SDK.
Note: make sure to run until post install of the SDK. zephyr sdk install
Install Nordic SDK and follow setup
Note, after installing make sure to close all instances of IDE and re-open to get new environment variables.
!Important: set the environment variable ZEPHYR_BASE to %HOMEPATH%\zephyrproject\zephyr or the path to the zephyr SDK, NOT the zephyrproject.