I remembered I had similar problems when installing version 2.2.0 (I don't remember if that was the case with previous versions).
Today I went to install lazarus-2.2.0-fpc-3.2.2-win64 to C:\lazarus220 on a computer with Windows 10 and which had a previous install of Lazarus (version 1.8.0) in directory C:\lazarus.
For a configuration directory, I selected C:\lazarus220_config.
I didn't touch other options, except choosing directories and checking 'Create a new secondary installation'. I noticed that option 'Create a desktop shortcut' was greyed out.
After installation I started lazarus.exe in C:\lazarus220 directory and I was presented with Debugger and Fppkg errors (comboboxes were empty):
Debugger: 'Error: file not found'
Fppkg:
File: C:\Users\*** my account name ***\AppData\Local\FreePascal\fppkg\fppkg.cfg
Error: there is a problem with the Fppkg configuration. (Fppkg reports that the RTL is not installed.)
You could try to restore the configuration files automatically, or adapt the configuration file manually.
Actually this was 2nd attempt to install it. First time tried wp's advice on ignoring Fppkg error, 'Start IDE', close it and started again, but it was exactly the same. 'Restore Fppkg configuration' also didn't worked ('Write new configuration files' was always greyed out because it was to old tools or something like that).
Then I looked in other tabs:
Lazarus
Combobox: C:\lazarus220\
Memo: OK
Compiler
Combobox: fpc.exe
Memo: File: C:\lazarus\fpc\3.0.4\bin\i386-Win32\fpc.exe
OK
FPC sources
Combobox: $Path($(CompPath))\..\..\source
Memo: Directory: C:\lazarus\fpc\3.0.4\source\
OK
Make
Combobox: $Path($(CompPath))\make.exe
Memo: File: C:\lazarus\fpc\3.0.4\bin\i386-Win32\make.exe
OK
I uninstalled and emptied directories C:\lazarus220\ and C:\lazarus220_config\ and then installed Lazarus 2.2.0 again (to be sure everything is as installed and to take screenshots of installation).
I changed value of Compiler tab combobox to (with use of dropdown button): $(LazarusDir)\fpc\3.2.2\bin\x86_64-win64\fpc.exe
Memo changed to:
File: C:\lazarus220\fpc\3.2.2\bin\x86_64-win64\fpc.exe
OK
Immediately after that, FPC sources, Make and Debugger tabs fixed themselves.
Fppkg tab still showed error, so I clicked 'Restore Fppkg configuration'. In the window that opened, combobox was already filled with 'C:\lazarus220\fpc\3.2.2'.
BUT: It said it will write configuration to C:\Users\*** my account name ***\AppData\Local\FreePascal\fppkg\fppkg.cfg and Fppkg compiler configuration to %LocalAppData%\FreePascal\fppkg\default. I didn't see any way to change where this configurations would be written.
I made backup of this files and write configuration.
After that Lazarus 2.2.0 was starting without complaining. Also your test project Circles.zip was compiled and run without problem (and any further questions or configuring).
If it is needed, I have screenshots of every step.
So, I think the 'Create a new secondary installation' option picks up configuration of old Lazarus installation instead of new one. Further more, I don't like that this fppkg data overwrite existing data from previous installation.
That being said, I prefer to use FPCUPdeluxe. On my other computer I have installation of Lazarus 2.0.10, which I installed on 16.10.2020. Fppkg files mentioned above have the same date, and I installed couple of other versions of Lazarus with FPCUPdeluxe afterwards (including 2.2.0).
Only thing I have to mention is that 64-bit version of FPCUPdeluxe made me problems, so I use 32-bit version.