I expected that as well you are right, but I wanted it to be known that I had the issue too which could mean a issue between the latest driver update and Texgen.
As a update the solution above also worked for me. Specifically for anyone reading this and a little lost please navigate to the following folder:
-Where you unpacked Dyndolod start by going to the "Edit Scripts" folder > DynDOLOD > TexGen_SSE.INI (Note: if you are doing this for a different game edit that games ini. Since I am doing this for Skyrim SE I edited the SSE ini)
-Scroll to the bottom of the ini and add this at the very bottom:
;Fix Errors While Running
RenderSingle=1
RenderTexturesSingleThread=1
As a side note. I noticed that Texgen does NOT work on some 4k monitors, specifically the start button is hidden. It of course will depend likely on your monitor type etc. but for my monitor the default scale is 300% and this is where the actual problem and solution lie. If you have issues seeing the entire popup window for Texgen and cant even run it because the button is hidden on you, right click your desktop and select "display settings" Change your scale to a lower number. For reference my default scale is 300 but I change it to 200 to run texgen. This allows me to see the entire window. Without changing the scale I cannot see or select the run button in Texgen.
Im not sure if you will read this Seshon but out of intellectual curiosity when we add the two ini lines above are we just processing using a single thread meaning its no different from multi processing just slow? What would be the cause of this and can you explain to me why you thought (correctly so) that would be the solution?