Rsyslog WorkDirectory error

I am using the same config settings as this old thread (Remote logging iptables/rsyslogd) which are provided by loggly.
but I am getting the errors below, can anyone help?

$WorkDirectory: /var/log/spool can not be accessed, probably does not exist - directive ignored [v8.39.0 try ]
error starting up disk queue, using pure in-memory mode [v8.39.0 try ]
action-5-builtin:omfwd queue: error creating disk queue - giving up. [v8.39.0 try ]

Does the directory exist?

nope, and when i create it manually the error goes away but no spool files are generated.

What puzzles me most is that rsyslog with root privileges and should be able to create any directories and spool files it needs but it doesn't, even when I add the "$CreateDirs on" setting to the config file.
any insight would be appreciated.