The new version of Bluewater uses a different default date format than previous versions, but it also allows you to specify the date format on the preferences page. Unfortunately the new default format is not what is expected in the DC converter tool.
All you ned to do to make it work with the DC converter is change the ‘-‘s in the Date format string to ‘/’s
i.e. you want a format string like this: %Y/%m/%d
NOTE: I also noticed an older version of the DC converter was in my dropbox folder. Not sure how this happened, but if you do not see ‘v2.1’ in the title bar, and the ° signs display properly in coordinates, then please re-download from here