I was not able to download any plugin / them, wordpress was still insisting on using FTP, which also did not worked. So after some googling I found working solution
- Add define ('FS_METHOD', 'direct'); to config file wp-config.php and
- modify file wp-admin/includes/file.php so:
- find method get_filesystem_method
- change last line from return apply_filters('filesystem_method', $method, $args); to return $method;
For result see image below: