Hi, thanks for sharing this issue! I saw the bug report come through a couple of hours ago and noticed the output path was the problem.
It's interesting that this worked for you in V1. I imagine it must have been quite unstable, as the output path pointing at an absolute path would have messed up NCrunch's workspace isolation.
I've made a note to improve NCrunch's handling of this situation. Probably the fix will work by automatically overriding the OutputPath to be a path relative to the project file when NCrunch is building the project.
To work around this issue, I suggest making the <OutputPath> build property conditional on the project not being built by NCrunch, for example:
<PropertyGroup>
<OutputPath Condition="$(NCrunch) != '1'">R:\Domain</OutputPath>
</PropertyGroup>
.. in this way, the output will always be contained within the workspace and the engine won't bug out.
Cheers,
Remco