Looks like there's one main bug left to fix on the launcher, which I'm hopeful this update will alleviate -- sometimes the server will have a temporary error when connecting to Steam's servers. In that case, the launcher will now retry a couple times. If it does fail, it also does a bit better logging.
You should be updated automatically. To check if you are running the latest launcher, your log file will say "Local launcher version:7". If it indicates a lower number, then right click 8BitMMO in steam -> files -> verify integrity of game cache, which should force an update.
If launching via Steam doesn't work, try the logger batch file.