It's possibly, though unlikely. The 1-click upgrade should not be changing those permissions.
Make sure you don't already have the folder /wp-content/plugins/login-security-solution/ - sometimes a failed install of a plugin or theme will drop out halfway and leave the folder there.
If there isn't one, you should only have to ever edit the plugins folder itself to permissions 755, and the fact that you can do that removes the other common error (i.e. you don't have permissions to that folder).
Obviously you can upload it manually through FTP, but that's rarely optimal.