That's interesting:
I was puzzled why GSX couldn't issue a more user-friendly error message, since there's code in it that will check for the existence of the Traffic Cones files, so it can give you more clear instructions about downloading the vehicle updates, assuming that, if the Traffic Cones are missing, you probably haven't installed the latest vehicles...
However, in this case, by using that utility, which disables whole Simobjects folder paths, the files are STILL there, but there will be an error when they cannot created, since FSX has been prevented to create them, so GSX couldn't detect before it was too late.
In general, disabling Simobject folders might not be a very good idea, especially default ones, such as the Misc folder.
Since that folder contains hundreds of default library objects, if you disable it, each time the sim will try to create one of them, there will be a short pause causing a stutter in flight, caused by the error (the sim tried to create an objects that cannot be accessed) so, if the reason to use that utility was to obtain better performances, it would obtain the opposite effect instead.