Hmmm…I dunno what's wrong. Maybe you can use the editor and play the game from the game's file.
So I figured out that you need to not extract the zip file for the script to show up. But when I run it it shows this error.
Curiously, the launcher also crashes when I open the key settings of either p1 or p2. So I'm not sure what's happening with this version of Luastg.