I think the forward slashes in the path shouldn’t be a problem - we do convert them internally.
I’ve been looking at the logs that you uploaded and found a couple of things that may have clouded the picture. There are a few crashes in there, and so it could be that setting the VST paths didn’t ‘stick’ because the engine crashed shortly after. Firstly, I would advise disabling the ‘suspend audio device in background’ option because we’ve found cases where it can cause problems. Secondly, I see that you’re using the ASIO Generic Low Latency device rather than the native ASIO drivers for your devices, so I would change to use the proper ASIO driver. Once you’ve made those changes, then hopefully that should stabilise things a bit so we can work out what’s going on with Kontakt.