I can't answer your specific error, but about several installations:
On Windows a lazarus installation uses
- The folder to which it is installed (aka 2ndar conf path)
- the "primary config path"
If you use the official installer, the installer writes some info to the registry. Lazarus does not use those registry entries.
They are for the uninstaller. And for file associations (So windows knows what to do).
The installer can create a 2ndary install for you. When ask for the config file, enter a unique path. It can be inside the install dir "c:\lazarus2\conf". But it must not be equal to the install dir.
You can do it yourself.
https://wiki.lazarus.freepascal.org/Multiple_Lazarus#Using_lazarus.cfg_fileOnce you got your lazarus folder, create the cfg file. (or always start lazarus with the param for the correct config path.
fpc should not appear in you PATH env var.
Each installation should have its own fpc. So you can have your different fpc.cfg