Okay… so if ya got it working lets see what I did different…
I started with the Original ShooterGame Project, was 4.0, updated to 4.1 and redid all my current files to the changes
in the sample project for 4.1 as all my files are renamed and modified… It runs fine in editor.
I then Uninstalled the Original launcher code app and setup just the 4.1 source files from zip and recompiled the engine.
I then switched (using the switcher application) in engine binaries dir to 4.1
I removed the Launcher app as it was giving me conflicts with using both and so this was easiest way to go for the moment.
I then rebuilt my vc files from the updated engine source by right click project->generate…
I then built the Development Editor… Runs fine, allows me to run standalone or in editor window.
I then selected Development Server as the configuration and made sure my project was set to that and set to x64
I only build the project not the whole engine files as they should not need to be rebuilt (so build project not solution).
I then load the project and cook the contents.
When I then click on local windows debugger with no changes it then fails 
I suspect you have done this differently
Also I just tried this again with a clean setup (removed all built binaries for game)
I did the cooking, it creates the following dir:
(projectdir)\saved\sandboxes\Cooked-WindowsNoEditor
When I then run debug with JUST -debug removing the “$(SolutionDir)$(SolutionName).uproject” from the front part of line
I still get the missing Localisaztion file path assert…
Localization dir IS NOT in the Cooked-WindowsNoEditor dir
I can run it in Debug mode for Developer Editor no problem and as long as I don’t run it standalone I can debug it then.
I also tried the DebugGame Server Configuration. Same result.
I am also going to try this as DebugGame Client next just to test it.