I've been having this exact same issue on WinUAE
After some tracing I found that an installer (rather it the 3.2, 3.2.1, or some other package that updates startup-sequence. It truncates this line:
Code:
LoadModule DOWNGRADE L:Ram-Handler L:Shell-Seg L:System-Startup Libs:dos.library Libs:gadtools.library Libs:graphi
After I changed it to
Code:
LoadModule DOWNGRADE L:Ram-Handler L:Shell-Seg L:System-Startup Libs:dos.library Libs:gadtools.library Libs:graphics.library
Error disappeared and it booted fine.