FYI, I have found and fixed this and several other problems having to do with running DB in a directory without a local sysvars2.21.txt file or a local settings file and subdirectory. Pretty sure this is what was happening to you I.e. DB thought it was running somewhere other where the sysvars2.21.txt file was (not sure exactly why it thought this). The subsequent hang/crash after selecting sysvars2.21.txt was because there was no settings subdirectory in that folder.
There are no doubt more bugs in this area - DB still isn't very tolerant of not having its subdirectories pre-created - and it hates it if you cancel instead of telling it where whatever file it needs is, but its at least a little more well bahaved now then it was. I fixed a couple of cases, there are no doubt more. At some point, I'd love to code it up such that it just creates all the subdirectores and needed files including sysvars and default.set if all you have is the naked exe, sort of a self-extracting install. It will make writing an installer butt simple. But right now, if you don't have these it won't like it...