How can I fix this? I have upgraded the system, both from Terminal + Software. I have disabled all the extensions, logged out. And reinstalled Arc Menu. Still gives me [ERROR]. The same goes for other extensions, when I try to update them from extensions.gnome.org. I installed Dash to Panel before everything else mentioned above. I am on a VirtualBox, just to see if I can resemble Budgie as much as I can. So far so bad 
I can’t check PureOS at the moment, but a new version of GNOME was released fairly recently, and it may have made it’s way to PureOS. It’s possible the developers of various extensions haven’t updated them yet to work with the new version of GNOME.
It’s because PureOS comes bundled with extensions that are installed system wide, hence you can’t update them like you normally would on the gnome extension website, giving you errors.
As I understand it, there are two folders for gnome-shell extensions:
~/.local/share/gnome-shell/extensions for user-side
/usr/share/gnome-shell/extensions for os-wide
I fixed it by manually deleting the folder extension in /usr/share/gnome-shell/extensions/ and then re-downloading them again. After doing that when you update them on the site it doesn’t give you any errors because they will be installed in your Home folder.
If I were you I would file a ticket because this bug has been around for a while. If PureOS should come with extensions they should be update-able.
There are in my opinion a few extensions that should come pre-bundled to make the user experience easier to the less linux initiated that you can turn on, I’m thinking for example of Dash to Panel, Arc Menu, Desktop Chaos, Focus my Window, Tweaks in System Menu, Suspend Button, to name a few. But that could be for another thread.
There was actually a good blog post about how GNOME could be improved based on the popularity of those extensions, worth a read: https://jatan.tech/2019/05/01/gnome-3-32-is-awesome-but-still-has-key-areas-for-improvements/
Does Arc Menu require gnome-menus? Check out this wiki article and let me know if that helps.
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This method looks fragile: when the system-wide installed extensions are updated in PureOS repository, you’ll likely get them back in /usr/share. It is cleaner to uninstall system-wide extensions properly with the package manager; you can do this with apt in a terminal:
apt list gnome-shell-extension*
apt remove PACKAGE_NAMES