Additional Information
When you run
LVMerge.exe's Support VI, CallLVMerge.vi which located at C:\Program Files\National Instruments\Shared\LabVIEW Merge\supportVIs,you will get Error 7 as illustrated by image below.
The LVMerge.ini file mentioned by the Error Source can be found in user's Temp folder. It will only be created when LVMerge.exe is called via Command Line and will be removed automatically once the execution is completed. The INI file does not contain any information regarding the Option Menu. It is used to temporary store the parameters provided by the user via Command Line during LVMerge.exe execution as demonstrated by image below.