I have written a guide to answer the most common questions/issue that arise from not being able to launch the nwn2tooltset.exe in Windows 10 in the year 2020.

[Where is the Tool Set ? ]
-it is located in C:\GOG Games\Neverwinter Nights 2 Complete

[What is the name of the launch file]
-it's default name is nwn2toolset.exe

[My toolset wont launch]
follow these instructions:

-The common solution is to turn off (set to : use application settings) the Threading (or multithreading) 3d option for NVidia, Hyperthreading for Intel chipsets, or the Tinseling 3d option for AMD / Radeon .

-Your mileage may vary as to where these settings are depending on your graphics card management software. But it should resolve your issue.

-After launching the application it should prompt to install Directx9 and Net .2 & 3.5 , and update c+++ , let it. ( you must wait till the installer says "finished" DO NOT EXIT WHEN THE BAR LOOKS FULL).

-If they don’t update automatically , you’ll need them in the SPECIFIC VERSIONS listed, new versions will not help you out. You can get them directly from Microsoft for free.

-More often than not Directx9 is the one you’ll have to manually install.

-Create a shortcut to Nwn2toolset.exe and place it on your desktop (this is a required step!).

-In your taskbar search type “program compatibility troubleshooter” and launch the program it finds which should say something like "run programs made for previous version of windows" (ignore web results).

-The program will ask to populate a list of applications by searching your computer: Let it do so.

-On the list it populates : select the toolset shortcut you created.

-Follow the prompts (select the top option)

-When asked select “test program” it should Launch the toolset on it’s own.

-Create a new interior area in the toolset , toggle the Occlusion grind ON (top left), and select Tile sets (bottom right)

-select ant tile from the list just above and place it on the area, repeat this process a few times.

-if it works , go back to the troubleshooter and tell it, that everything worked, follow the prompts and it will save the needed settings to launch the toolset properly.

-Running the program as admin is recommended.

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TLDRSummary: The program must be run with: Diretx9 specifically , Net 2 &3.5 specifically, windows XP compatibility service pack 2 specifically, in administrator mode to function properly.

Thank you so much for the information. I followed the instructions and it works now. I have a new issue though, if you know the answer to this. Once I am in the application, when I go to open a module in the mod folder, it does not see them. I cannot click on a module to open it.
I ask because I use the Toolset to add items to a module, then I have my character pick up the items. I then export the character with the items back to the main game and continue.
I love creating unique weapons and armors that you can't obtain in the game.

I also use the Toolset to create cape's or cloaks for my party, so everyone can have a cape.

When you look in the Modules folder with Explorer, do the files have the .mod extension?

In the toolset, if you select it to show "All files" , and not just .mod files, can you see them? (See Attached Pic)

If they just have a different extension, ( like .nwm) rename them to .mod