I am running windows 10 32bit, I click on toolset laucher, the app load screen comes up & it starts it's load routine... it comes to installing wrappers, and then the windows app checker screen comes on saying that a problem has caused the toolset to stop working & windows is checking for a solution. (I have never seen it find one for anything, BTW).

Then everything closes.

I have no idea why this happens... the toolset is the "official" included app for the game... why won't it work?

If your talking about NWN2 toolset, it requires two things.
The older .Net frameworks.
Go to control panel > programs and features> Turn Windows features on or off. & tick .Net framework 3.5 (see pic.)

And it needs DirectX 9.0c Download the june 2010 runtimes to a temporary folder on your desktop.
https://www.microsoft.com/en-us/download/details.aspx?id=8109
Run DXSETUP.exe, when it says installation complete, you can delete the folder on your desktop. (see pic.)

Thank you for your response. I did try the procedure you outline above, but the toolset still doesn't work. I am running Windows 10, and I don't think it wants to "play nice" with dx9.

My set up is:

Operating System
Windows 10 Home 32-bit
CPU
AMD Phenom II X4 965 61 °C
Deneb 45nm Technology
RAM
4.00GB Dual-Channel DDR3 @ 666MHz (9-9-9-24)
Motherboard
ASUSTeK Computer INC. M5A88-V EVO (AM3R2) 30 °C
Graphics
W2253 (1920x1080@60Hz)
2048MB NVIDIA GeForce GTX 960 (PNY) 32 °C
Storage
1863GB Hitachi HDS723020BLA642 ATA Device (SATA) 30 °C
153GB Hitachi HDS722516VLAT80 ATA Device (ATA) 29 °C
232GB Western Digital WDC WD2500JB-00GVC0 ATA Device (ATA) 27 °C
Optical Drives
Memorex DVD+-RAM 550L v1 ATA Device

As you can see, it's a pretty old setup, although it should certainly be capable of running NWN2. Which it does. Although I can't say I don't have problems with it when I change anything at all.

I'm dithering about a new build right now (cash is tight) and have been going through some older games that I never got around to when they were new... hence NWN2.

Can't say it's been fun with this one

I am also on Windows 10, & it has no issues with dx9.0c or the toolset.
Can you just confirm that when you run directx_Jun2010_redist.exe & then DXSETUP.exe, you got the "Installation Complete" message shown in my screenshot above

I run the toolset as administrator, with compatibility for XP service pack 2.