As soon as AxCrypt 2 is fixed I can give it a try again.
It’s not AxCrypt that’s broken; it’s your setup.
What Svante was trying to explain to you is that AxCrypt 1 made accommodations for broken setups. AxCrypt 2 tries to load the native application instead of the forwarded application.
You can always use the decrypt feature of AxCrypt 2 instead of double-clicking on the file as this will fix your broken setup. Or you can continue using AxCrypt 1.7. The problem is your setup and the way Windows handles files.