Grasping at straws: What does WHICH XYZ report? (Maybe it's an alias, or it starts a different batch file.) How about TYPE /X XYZ.BAT? (On the remote chance that the percent sign isn't really a percent sign.)
I can't find a way to reproduce that. I'd suggest renaming your .INI file and your 4START file, and restarting TCC/LE. If you still see the same issue, it's probably time to uninstall TCC/LE, reboot, delete the program directory, and then reinstall -- because something is deeply screwy.
What's the result of [C:\Program Files\JPSoft\TCCLE13x64]which echo
Is there somewhere an executable "echo.exe"? Maybe in drive:\cygwin, or any "Unix Tools for Windows", or GnuWin installations, etc.