Solution
Based on the diagnosis, there may be two solutions to this issue.
Solution #1
Reinstall BarTender on C:\ and make sure Microsoft SQL Server 2014 Express LocalDB is not removed from the computer afterwards,
Solution #2
BarTender will always verify if SQL LocalDB is installed in the following paths:
"%ProgramFilesW6432%\Microsoft SQL Server\120\tools\binn\SqlLocalDB.exe"
"%ProgramFiles%\Microsoft SQL Server\120\tools\binn\SqlLocalDB.exe"
"%ProgramFiles(x86)%\Microsoft SQL Server\120\tools\binn\SqlLocalDB.exe"
If your BarTender copy is installed on the D:\ drive for example, copy/paste the D:\Program Files\Microsoft SQL Server\120\Tools\Binn folder to the C:\ drive and recreate the same directory structure:
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