Had the same problem,just got DCS world and no go,
DCS_updater.exe (faulty win icon) seems corrupt, i dont kow what causes this, but...
after checking the log, i found another one in the map:
users/name/appData/local/Temp/DCS. (this map is "hidden")
Was the same version ( 2.3.8.55, but not corrupt (has the original DCS icon )
So i copy and did a good update. (1.2.7.23803 )
I did however disabled BD (service etc)when i was running it, not sure if it was BD al allong.
Sorry for bad Englisch.