Your Log file doesn't show any errors, and that message about the .INI file is absolutely normal, it indicates that GSX is using the customization file made by Flightbeam, which is exactly what you are supposed to see.
Note that, Flightbeam is releasing the 1.1 KDEN update any moment now, but Couatl is already updated to support it so, it's *possible* the error was caused because you still haven't updated the scenery. Just wait for the updated KDEN installer, which should be available very soon, it should fix your issue.