Symptoms

If using the File Explorer "Search" function to look up the Connection String Editor in the Host Serverin directory, running the application results in the error "Did you run the tool from the K2HostServer directory?"
 

Diagnoses

Because of the way the search function works, it prevents the ConnectionStringEditor.exe from accessing the connectionString values from the K2HostServer.exe.config file, which it needs to be able to decrypt.
 

Resolution

Running the tool from the directory itself without using the search function resolves this issue.