The toolset needs two things to run.
DirectX 9.0C https://www.microsoft.com/en-us/download/details.aspx?id=8109
Make a temporary folder on your desktop to download the runtimes to, then scroll down and run DXSETUP.exe.

The other is .NET3.5, which comes with Windows 10, but may not be installed by default.
In Control Panel > Programs and Features> Turn Windows features on or off
and tick .NET 3.5, Windows Communication Foundation Non-HTTP Activation

I don't know if it is related but I had a problem running the toolset years ago and it was solved by changing the Operating System's regional and language settings to English. I thought I'd mention it incase you are using a different language.

The solution posted by Tarot_Redhand on this link https://forum.neverwintervault.org/t/toolset-ee-hangs/1842/16 quite a bit down on the page, fixed the problem for me.

For those who can't find it, I post the solution below. ;-)

Open the nvidia control program. Under “2D Settings” choose “Manage 3D settings”. In the dialogue that pops up select the “Program Settings” tab. Wait for the drop-down box to finish populating. Use it to select nwtoolset.exe. In the large box under “2. Specify the settings for this program:”, scroll down until you find “Threaded optimization” (it’s close to the end of the settings). To the immediate right of that you will see it is currently set to Auto. Click on that and select off. Click on the apply button. The toolset should now work properly.