MSTN U17 - ERROR XmlHierarchyConfigurator: Cannot find Property [createpath] to set object on [log4net.Appender.RollingFileAppender]

When I start MicroStation I get this message in the Text Window that appears:  

Further issues that arise are that the last 10 files visited files are not displayed and the settings disappear (location of windows) when MicroStation is restarted.

What am I doing wrong?