Retrobat not reading es_systems.cfg from the "RetroBat\emulationstation\.emulationstation" folder but from %HOMEPATH% folder.

Hi, I have installed retrboat latest version and the first time I opened it, it gave me "It looks like your system configuration file has not been setup or is invalid...." error message.
I tried doing some changes to es_systems.cfg inside the retrobat\emulationstation\.emulationstation manually and nothing happened. Turns out emulation station is looking for configuration file inside my %homepath% folder instead of the folder that shipped with retrobat (RetroBat\emulationstation\.emulationstation).
I also checked emulatorLauncher.cfg and it has this data

# EmulationStation config files path
home=.\.emulationstation

# RetroArch Folders
bios=.\..\bios
saves=.\..\saves
screenshots=.\..\screenshots
shaders=.\..\system\shaders
videofilters=.\..\emulators\retroarch\filters\video
decorations=.\..\decorations
system.decorations=.\..\system\decorations
retroachievementsounds=.\..\sounds\retroachievements

This looks fine to me, and I am sure this means the home folder should be the one from my installation folder not from the %homepath%.
I want to mention one thing that my %homepath% has space in it. If this for any reason is the problem I am not really sure.
"C:\Users\FirstName LastName".

Thanks in advance.

Hello,

You need to delete your windows environment variable HOME