I've installed
lazarus-2.0.12-fpc-3.2.0-win64.exe in folder laz64
and also
lazarus-2.0.8-fpc-3.0.4-cross-i386-win32-win64.exe
in the same folder
You should install the 2.0.12 cross compiler.
In the above case, they have different fpc versions. Your Lazarus will be setup to use the 3.2.0 compiler, and that does not find a 3.0.4 compiler.
You can keep what you have installed (don't worry about the extra bits / unless your disk space is limited).
Just install
lazarus-2.0.12-fpc-3.2.0-cross-i386-win32-win64.exe
from
https://sourceforge.net/projects/lazarus/files/Lazarus%20Windows%2064%20bits/Lazarus%202.0.12/into the "laz64" folder.
There is a small chance you get some "unit not found" error. If so try
- rebuild ide "clean all" / tools => configure build IDE
- or finding and deleting all ppu files.
I've set Project Options/Compiler Options
Target OS =Win32
Target CPU family =i386
Target processor =Default
That looks correct