Permission denied - Fresh Install Update

Installed a fresh install on a ubuntu GCE 14.04 and when I went to update the bench it gave me this error.

IOError: [Errno 13] Permission denied: '~/frappe-bench/logs/bench.log'

Solved it by setting the log file to 666 permission but why is this getting the error in the first place?

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I think the bench setup production makes a log entry as root. Will fix this. Sorry for the issue