Thanks for you report.
I believe this bug is due to the specific version of ren'py used for this update. I'll be updating ren'py to the newest version in the upcoming release (planned to come out by the end of July), which hopefully will take care of the issue.
A POSSIBLE FIX:
A few users that encountered this same bug have reported that unplugging some peripherals (controllers, joysticks, etc.) fixes the problem, and allows the game to launch without error.