everything is affected, its a registry hack

Clearly $^X is not affected.
I think the OP's problem might have no relation to the presence of MKS. Instead, it could be the Makefile that ExtUtils:MakeMaker has generated - which perhaps (or not) goes back to a %Config setting.

Over the years, I've seen similar errors where MKS is *not* present, but I don't think I've ever quite got on top of how the error arises, or precisely what to do to fix it.

I'm referring to a problem that turns up from time to time with DIRFILESEP.
If the OP is still interested, he might verify that the Makefile generated during the building of the module contains:

DIRFILESEP = \\
[download]

Cheers,
Rob

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