Hello @nsuro, welcome to the forum!
It sounds like you may be running into the same issue mentioned here (also on Windows 7):
The bad news (for you) is that their issue self-resolved so we don’t know why it started working for them.
Sorry if I missed it in your post, but are you able to run the tray-icon server without the service? Note that this is just a test, not a suggested solution - and don’t be surprised if it works but you don’t see any of your old backups / settings, that’s to be expected.