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It needs to go in same folder as Morrowind.exe etc.
You must run morrowind, set launcher options, start and exit to create an ini for MGE XE to use.
Have you done those things?
https://www.reddit.com/r/tes3mods/comments/hk4hlx/mge_xe_gui_isnt_launchingopening/
https://www.microsoft.com/en-us/download/details.aspx?id=35
New install could be missing the older DX9 that is needed. Try the link above, as other games you may wish to play may require them.
Is file/ folder set to read only. Need to be read/ write.
Have you white-listed with anti-virus?
"Data Execution Prevention (DEP) is a set of hardware and software technologies that perform additional checks on memory to help protect against malicious code exploits"
So on WIN 7 it can see MGE XE as "malicious code" and prevent it opening.
By the way the blue circle is just the loading animation.
Have you checked the MGE XE log? See if it says anything.
Have you tried running it in Administration mode?