Have you had this working before? or is this a fresh install?
the error looks like its not escaping the axoloti_release directory correctly, but it works on others for windows, so its a bit puzzling why your install is different. as it looks fairly 'standard' in which locations you are using.
a couple of things to try:
a) delete axoloti.prefs which is in the Documents/Axoloti folder, and then try again.
b) if you can run from the command prompt, as this prints the various paths used by axoloti.
btw: it looks like your running 1.08, please upgrade to 1.0.10 (and then do sync libraries) , it wont fix this issue, but we only support 1.0.6 (officially released) and 1.0.10 (current test release)