Xsplit broadcaster slowed down after update

Hello all

I have using Xsplit broadcaster for easy multimedia broadcasting and recording. I was using its version 6.0 but recently I updated it to version 7.1.  After I updated it Xsplit is no longer working after log in whereas the previous version was running immaculately.

I have tried this on two different streaming workstations but the same problem occurs on both. I think it might be an xml issue or db issue with my recent hardware upgrades. I have recently updated all window updates and also Nvidia updates  both manually and automatically. I also upgraded to .net v4.0 but despite all these updates the problem still persists. I receive the following error everytime followed by Xsplit UI after running the program:

I have searched a lot for this on the internet but found nothing useful. If anyone has any ideas how to fix the issue, please shed some light on it. I'll be really thankful.

Thanks and best wishes