What is WBL?
Please disable packets in SnoopDOS and rather enable all functions.
Obviously it's not Workbench which fails but WBL. It does not search the path but only the local directory, SSD1:WHDLoad/Demos/242 in this case.
Edit: ok, ignore that WBL things. This is the task which loads program from Workbench. Nevertheless you should disable packets and enable all functions in SnoopDOS. Also make sure that "ignore Workbench" is disabled. Then use the "Save settings" button, quit SnoopDOS and run it again. Only then you get a proper report from Workbench.
For further debugging, please select "execute command" from the Workbench menu and enter
path. Do not do this in a shell window, really use the "execute command" window.
Next do the same but enter
which whdload instead of
path.