This is pretty easy to fix. Since the last faction you played was Dwarves, the game is now also looking for Dwarves as a faction in the vanilla game. Because the game can't find the faction, it shuts down.
Reinstall TDH, select Gondor, Rohan, Isengard or Mordor and it will work again. This has nothing to do with 1.06.Go to the full post