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I get this message in Windows XP when I use the Banished shortcut. No problem when run from Application-x32.exe.
application-x32.exe is a 32-bit binary, while application-x64.exe and launcher.exe are 64-bit binaries. The shortcut most probably points to launcher.exe, that’s why you get this error.

Just create a new shortcut pointing to application-x32.exe and everything should go smoothly ;)

PS: I’m assuming here that your version of WIndows XP is a 32-bit OS.
Post edited May 22, 2016 by vv221
Same problem here with Windows 7 *32-bit* after updating from some old version to the recent one.

Starting launcher.exe gives me the same error message.

Starting Application-x32.exe works as a workaround.

But why is launcher.exe pointing to the wrong application? Should be fixed, imo.
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AmeisenMan42: Same problem here with Windows 7 *32-bit* after updating from some old version to the recent one.

Starting launcher.exe gives me the same error message.

Starting Application-x32.exe works as a workaround.

But why is launcher.exe pointing to the wrong application? Should be fixed, imo.
It's not that the launcher is pointing to the wrong application, it's the launcher itself that is a 64-bit application.
True, so it should be a 32 or 64 bit application, depending on the system used.
I just wanted to say this is still a problem. I updated today and get the same error. I'm running Win 7 32-bit.