Desktop App Converter failed with E_CREATING_ISOLATED_ENV_FAILED error (DirectoryNotFoundException)

I'm trying to use Desktop App Converter, but it constantly fails with the E_CREATING_ISOLATED_ENV_FAILED error.

The inner exception that has sense is the System.IO.DirectoryNotFoundException

Inner Exception[3]:
System.IO.DirectoryNotFoundException: The system cannot find the path specified. (Exception from HRESULT: 0x80070003)

From the log file, I've got the following.

Most probably the problem is in these two lines (please see below).

Setting up Conversion Environment

[2016-09-30T14:23:26] Copying contents of D:\MyApp to C:\DesktopAppConverter\ccba45a0-1360-478d-b9e2-66d32dbedc0d\shared\installer to be shared with isolated environment
[2016-09-30T14:23:26] Copying KnownFolderDump.exe and its dependencies to C:\DesktopAppConverter\ccba45a0-1360-478d-b9e2-66d32dbedc0d\shared\dac\bin

I investigated the GUID-named folder and found no "SHARED" folder inside. So, no contents of MyApp and no KnownFolderDump.exe. The "dac" folder exists, but under "output", not under "shared".

And the "dac" folder is empty. The exception System.IO.DirectoryNotFoundException confirms my conclusion. The question is how to fix that?

The problem occurs on every conversion.

I cannot try to create the folders in advance because each time the converter generates and uses a new GUID.

I tried two different installers (InnoSetup and a plain self-extracting archive produced by 7zip). I also tried two different apps: WPF/.NET 4.0 and a plain Win32 app with no dependencies other than system libraries: kernel32, user32, gdi32 and msvcr90.dll).

The 7zip self-extracting archive also depends on ole32, shell32, oleaut32 and msvcrt.dll instead of msvcr90.dll).

Thank you for any advice!

I had the same problem and it turned out to be a problem with the Hyper-V setup on my machine. More specifically, the problem was with the creation of a virtual switch. (Have a look in the Administrative Events Log just after you get a failure). I suggest you look into that. I cycled the Hyper-v related services on my laptop and the converter started working.