No obs-plugins folder.

[EmeraldThunder1]

Extract the zip and copy the data and obs-plugins folders to your OBS Studio Folder (C:\Program Files\obs-studio by default).

There is no obs-plugins folder inside both the online repo and the folder I have downloaded. Am I doing somethign wrong?

[kounoike]

I think it is source-zip which you downloaded.
please download obs-virtualbg-v{VERSION}-win64.zip.