TexGen and DynDOLOD use OpenGL to render, create and resize textures.
The minimum OpenGL version required is 3.0.
Make sure the first graphics card reported by the OS is the correct one.
In case of any problems, Install the latest recommended or official graphics driver. Do a clean install. Do not install crapware shipping with drivers or terminate it before running the tools.
Ignore outdated advice to use older driver versions. If there are still problems after making a clean latest driver only install and removing/terminating crapware, report the problem on the official DynDOLOD support forum.
OpenGL version too low: OpenGL 1.1.0
This message typically means the default Windows graphics driver is used. Install a recent graphics driver for the graphics card installed in the system.