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Keil MDK 5.26: compilation errors after Win10 update

After upgrading Win10 from 1803 to 1809, I get the following error message when compiling any C file:

*** Using Compiler 'V5.06 update 6 (build 750)', folder: '.....\ARM\ARMCC\Bin'
compiling main.c...
"no source": Error: #869: could not set locale "" to allow processing of multibyte characters
../Src/main.c: 0 warnings, 1 error
"../Src/main.c" - 1 Error(s), 0 Warning(s).

Everything compiled smoothly before update. I have not changed my locale or languages or anything else.
Please help!

Note: here is a similar old post - not answered:
http://www.keil.com/forum/13327/

-- Pavel A.