That system folder should remake itself any time you start the game if it is gone.This happens to me for the second time and the first time it worked out when I put the system folder - let me try again with the system folder at the end of version 0.7.2 otherwise I will just have to start all over again.
Let me try the system folder and if it doesn't work I will start the game again ......
Generally, you don't want the game in any system folder, not that one, not the desktop, not documents, none of them.