I prefer the XAMPP method personally, it's a nice package and it includes "normal mysql" as well
The only time I had an "issue" with MySQL was when I installed XAMPP and then VS on the "server" computer, with it's insistent push to install its junk MySQL Lite crap. It caused all sorts of havoc until resolved.
I'm not seeing the issue though, aside from world stating you have updates in the manifest to be applied. world.exe is NOT running (not in the sense of running the eqemu world) in the screen shown, just fyi.
Also, are you sure XAMPP is completely uninstalled? If so, remove the path to the mysql install from your environment path (unless c:\xampp\mysql\bin is where your actual mysqld.exe is located).
But yeah, you have updates that need to be applied. Backup your DB, then select 3.
That's how I read it anyway. Not sure why you are showing your Windows FW stuff?
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