RESOLUTION 1:
1. Close Toad.
2. Rename the Toad.ini file to Toad_old.ini found in the C:\Program Files\Quest Software\Toad for Oracle directory.
3. Restart Toad. This will create a new Toad.ini file automatically using all of the default settings.
RESOLUTION 2:
Refer to Solution 13522 - "How to convert PERSSQL.dat, NAMEDSQL.dat, and SQLS.dat files from older versions of Toad to SAVEDSQL.xml in TOAD 8.6." for instruction on how to convert the SQL Recall files to Toad 8.6:
https://support.quest.com/SUPPORT/index?page=solution&id=SOL13522