I have now confirmed that ver 2.11.1560.0 works fine on my SD card in my work laptop (no admin rights).
Apparently, I had been pointing Axcrypt to wrong drive (operator error!).
I am now test driving the premium version.
Works as expected – can encrypt entire folder (which is only premium feature that I need).
Does not encrypt the contents of nested subfolders – just the active folder level.
Is there anyway to encrypt contents of nested subfolders without selecting folders at each level individually?