c:\ProgramData\squidy.avi is generated by the plugin after rendering your comp to an AVI. It sounds like the render is never kicking off, but there is a workaround: Manually queue your comp for a render to AVI, and set the render location somewhere project-agnostic, like c:\projects\GIFs. Render your comp out, clear the queue, and delete the render. Squirting should now work.
The reason this workaround works is because GIFSquid/CuddlePhish render to the last location you rendered to.
Also if you haven't already, join the High Quality Gifs discord where lots of folks share tips and give advice.