Since the Kindlet starts up correctly, the problem is not with the developer keystore. I suspect it's with the stored data being in an outdated format, but I can't for the life of me find where they are stored. They used to be in /mnt/us/developer/ too, but maybe they moved that to /var/local with the new Kindlet implementation.
My suggestion: try deleting the app (using long-tap, delete), then reinstalling it.
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