Desktop and Laptop Option - [Setup]
Warning V-138-32768-6
Invalid handle
Initialization of Notification dialogs failed (0x80000006)

Recipient Configuration
V-19-310-1-5
A data store relate error occurred.
The DLO Console closed and upon restarting the following error appeared:
Desktop and Laptop Option
Unable to connect to server 'ServerName'. DLO Administration
service is not running. Would you like to check the service
credentials?

Change both the services SQL (DLO) and DLO Admin Service to run as the same account. Also this account should have sysadmin Server Role to the DLO Instance.
Or, from the example above add the DLOadmin account which runs DLO administration service to sysadmin Server Role to the DLO Instance using SQL Management Studio as well as adding the user account as db_owner and DLO_Administrator. Then restart the DLO Services.