Ok, the exception is occuring in DataAccessAdapter.ReadHandleCatalogNameSettingFromConfig(). (is in the generated code)
It's occuring when this line is executed:
CatalogNameUsage catalogNameUsageSetting = (CatalogNameUsage)(int)configReader.GetValue("CatalogNameUsageSetting", typeof(int));
there's no way to test if a section is there, you just have to try and if it's not there you'll end up with an exception, which says: "The key 'CatalogNameUsageSetting' does not exist in the appSettings configuration section.". This exception is caught and never propagated upwards, but used as a signal that the setting isn't there and the code therefore reverts to the default.
So that's the reason for this exception. I.o.w.: harmless.