I experienced a similar problem with Nehrim -- hence the reason I am replying here rather than starting a new thread. However, I was not getting an unhandled exception error, just that "switching" to Nehrim would fail with a suggestion to check folder permissions and possibly restart my computer.
This behavior did not begin when I first installed Nehrim. Instead, Nehrim would not launch after I "switched." Instead, it would crash on start-up. As a result, I "verified" Oblivion files through Steam and tried again. That didn't help. Then I uninstalled Nehrim and Oblivion. Trying again, the Nehrim launcher refused to "switch" to Nehrim and started complaining about folder permissions. That sent me down the Windows 10 permissions/UAC rabbit hole complete with several uninstall/reinstall cycles, including the manual removal of residual Oblivion directories after uninstalling within Steam. Nothing worked...until it finally dawned on me that the Oblivion_BACKUP folder was a result of my previous attempt to run Nehrim and not from the modding process for Oblivion when I last played it months ago.
In summary, "switching" can fail if an old Oblivion_BACKUP folder still exists when trying to "switch" from Oblivion to Nehrim. This is an obvious problem in hindsight, but the error dialog put up by the Nehrim switcher/launcher should have reported an existing Oblivion_BACKUP folder as the source of the "permission" problem rather than a more generic problem.