Log not displayed, many new empty windows created

I have logging set to show on all my profiles - keep launcher open also.
New windows are created with no logging information in them. Window is not closed when game is done, and not re-used when a new game is launched. See attachment.

EDIT: Log file is being created correctly on disk.
The launcher is being started with no special options (e.g. no XP compatibility, no admin permissions).
The game itself launches correctly, plays fine, closes fine (except the stuck-in-the-bed bug).

Old launcher was displaying game log fine, this is a development exclusive to the "native" launcher.