When opening the Design32 program, the following message is encountered.
(M1173) Invalid layout directory <layout path>. Using current directory
The Default File Location for Layouts is no longer accessible. The following images show that although the "C:\Program Files (x86)\Loftware Labeling\layouts" location is expected by Design 32, the Windows dialog confirms that this directory does not currently exist.
Either change the Default File location for Layouts in Design32, or re-add the layouts directory already set as the Default File location for Layouts.