Hmm. Maybe it just can't understand your launcher_profiles.json. Try using a different workDir maybe?

Try running this in command prompt: java -jar C:\path\to\olauncher.jar --workDir %appdata%\.olauncher

Error: Unable to access jarfile C:\path\to\olauncher.jar

should i execute from a specific directory?

You should replace C:\path\to\olauncher.jar with the actual path to the olauncher.jar file. You can try typing

java -jar 

and then drag and drop the jar file into the cmd window. After that add the parameters:

--workDir %appdata%\.olauncher