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I went to try this myself and had a problem, but not the same problem.
My characters (last saved with an up-to-date Hero Lab) load into Realm Works fine and I can view them in RW, but when I go to look at them in Hero Lab it starts in Demo mode. I installed Hero Lab to a different place than the default and use -dataroot to put the game data in the same directory as the application, and this is the same thing that happens if Hero Lab is started without the -dataroot.
They open just fine. I fixed the file associations...two years ago? Back when I first installed Hero Lab on this machine.What happens if you double-click on the .por file from the Windows file Browser? If HL enters demo mode then you need to change the way that windows launches the HL application (I don't know how to change that, but it is a thing to change in Windows, not HL).
FWIW, I don't consider making junction points to be a clean workaround, especially when there's a documented command line option.