New Blog Templates doesn't copy images to new site

New Blog Template is integrated with Pro Site. After site creation, the images are not showing up at the front end and at the backend.

There is a JS errors in the developer console:

Failed to load resource: the server responded with a status of 403 (Forbidden)

And direct image address shows an XML file:

<Message>Access Denied</Message>

The folder permissions are set at 775, and we would like not to change this.

All the images are uploaded to Amazon S3.

FTP credentials and site’s username and password are provided