VLC: Prefs automatically reset on open and close

Every time I exit VLC Portable, the vlcrc (settings) file in Data\settings gets renamed to vlcrc.####, and the prefs won't get saved for the next session.

If I forcefully remove all these random files and just put a clean vlcrc file in the folder, VLC.exe opens fine - once - and then gets reset again.

If I open a video file as opposed to the .exe, the prefs get reset immediately. Even the Privacy and Network Access Policy popup reappears.

How do I get VLC portable to retain its preferences?