Hi!
I'm having the same issue, now with Dyndolod. This is strange, because I was having the same issue with xLODGen, but now it's working fine.
It's exactly as described in the OP. The only thing that changes is the mod being processed at the time.
Can you take a look at the logs, please?
bugreport: https://paste.ee/p/z6QJ6
log: https://paste.ee/p/zaiPI
Thank you!
EDIT: I forgot to mention that the tools are on a drive outside of the MO2 and the system folders. Also, I'm using the x64 version. I tried with the x86 and it worked with a clean install of the game, but with the full mods it stopped without giving me an error, it just hanged.