There is nothing inside??
And as soon as I delete it and try again open the application Story Creator once more IT OPEN?!?!?
Ah, the code is poorly written for it's time. So, what was happening was Story Creator was detecting if the folder existed or if the file existed, but if the folder existed and the settings file didn't exist, it would still attempt to read the settings.json file, hence the error.
I don't think this is a major issue, however, as the only code pertaining to this file is literally one global setting to determine if word-wrapping should be enabled in the dialogue editor.
However, I realise this has caused an inconvenience for you and this shouldn't be the case. If it happens again, simply delete the folder as you have done and start up the application again.