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I don't know what causes this as GenOpt just spawns a new process with the string specified by Command. This process runs in a subdirectory of the current directory so that output files between parallel processes don't overwrite each other. If your decoder_5spot file reads from files, this may be the issue as it executes from a subdirectory below the directory from which you started GenOpt.

I suggest you remove the -nodesktop and -nodisplay options to see whether this opens a Matlab GUI, and then you should see whether Matlab encounters any error.