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I have read that this is a known bug/problem but I cannot find the solution/workaround.

When I put 'mod' files into my 'mods' folder and then try to start a game with mods (the second button/option after the 'start Torchlight 2 first option, it says there are no mods. It is no different than if I had an empty mods folder. Anyone have any ideas about this?

I have Windows 10 x64 bt.