Offline characters save files corrupted + D2R thinks its always starting for 1st time

Bug Report
1
  1. each time i start D2R, it asks for gamma correction, color blindness setting etc
  2. Save files get corrupted on start. I finished played, save & exit game, checked my save file to be present and non-0 in size. On next start, offline character is not visible in roster and d2s save file has 0 bytes.