The LockTexconv=1 setting worked.
With regards to the Windows Event log: I looked up the last log mentioning Texgen and this is what it said:
Windows Event Log:
The program TexGenx64.exe version 3.0.0.127 stopped interacting with Windows and was closed. To see if more information about the problem is available, check the problem history in the Security and Maintenance control panel.
Process ID: 11918
Start Time: 01d98b28cd40f01b
Termination Time: 4294967295
Application Path: D:\SVBackups\Skyrim Files\DynDOLOD\TexGenx64.exe
Report Id: 24e449fc-6dda-4941-9b54-f8077ecef89e
Faulting package full name:
Faulting package-relative application ID:
Hang type: Top level window is idle