There are few things:
The error message might be misleading. A file open error would always generate the same error message. Which is tough to identify what the actual issues is. I tested with a missing config file, it is the same error message as permission issue. This would have been easier if the program would identify exactly what fails at file open operation.
I moved the config.yml file over to the cloudflared default MSI install folder. Now both versions are able to read. However, I did not move the tunnel cred file over. When I run the tunnel, old version can proceed as usual and it is able to validate the file. While new version, if running with admin mode, it can proceed as well, but if I am not running admin mode, including running as “localSystem” in service setting, it would fail saying the cred file not found.
I would think this is a Windows permission issue, but if old version is able to run with all cases, why the new version is not able to? The SYSTEM user, current user and admin group all have at least read permission on the config folder (where cred file located).
Default configuration folder: C:\Windows\System32\config\systemprofile.cloudflared
Default cloudflared install folder: C:\Program Files (x86)\cloudflared
I am running tunnel on Windows Server 2012, if this is important. Also, not testing with powershell.This is a machine I just installed few days ago, I would suggest try to reproduce this issue with a refresh system and follow the guide provided from https://developers.cloudflare.com/cloudflare-one/tutorials/rdp instead of a quick test in a different environment, ie Test, dev env