After upgrading Zowe from V1.27 to V2.4 to support the Alert Central usage, Zowe launcher started task failing to come up with the below error messages.
ZWESVUSR INFO ZWEL0021I Zowe Launcher starting
ZWESVUSR ERROR ZWEL0026E CONFIG env variable not found
ZWESVUSR ERROR ZWEL0036E failed to initialize launcher context
Release : 1.0
The zowe.yaml was pointing to user.proclib while system one used for starting the STC. The issue was solved after editing zowe.yaml by pointing to the correct proclib and issuing the below cmd
'zwe init stc -c <path/to/zowe.yaml> --allow-overwrite'