Fix TFS Shell Extension-Cannot execute the configured tool issue

using TFS  as source control,  when we using compare feature, it shows below error:

TFS Shell Extension: Cannot execute the configured tool.

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Cannot-execute-the-configured-tool-TFS

there is a problem with file differencing and merging. If I view differences from Visual studio Source Control Explorer,  Diff tool runs correctly

how to fix it?

1. reinstall TFS

2. I guess you are using it in exploer,  but i tried, it does not have repro if using in Visual Studio

If any one find the solution, please notify me, thanks.