Was the Windows 10 an upgrade from 7 or 8, or been updated to the Anniversary edition and Photo Manager was installed before the upgrade?
If so then re-install the program following this procedure. There have been some changes to user permissions by Microsoft and they stop some programs accessing previously available folders.
. . . . I have tried running Photo Manager as an Administrator as well with the same result. . . . .
The problem you are having is indicative that the User or System permissions have been changed rendering the folders inaccessible.
Can you access the folders, that Photo Manager is trying access, using Windows Explorer?
Where is PhotoManager trying to create these folders - they should exist already in your Documents folder - they are standard Windows folders created when a user account is created and logged on, in Windows 8 and10 they are just called Music, Pictures, Videos.
However they should also be accessible using the old names for the folders, unless the Windows 10 upgrade did not create the link folder names correctly or set the permissions correctly.
I have now created the folders with File Manager that Photo Manager is asking for in the C:\Users\Steve\Documents directory and it has made no difference. The handle is invalid is the reason given. Why is it trying to create one if there is already one of the same name in the directory?