I have the same problem, I have installed on my computer Chrome and Mozilla, Im administration and I have the last version. Its problem with browser: Unable to launch the web browser. Please make sure the selected browser on your machine and try again. 
@korjan Latest version is 5.10.1? And please give me detail information to investigate this issue, ex: log file and screenshot?
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- open katalon and open my project
- icon + and new test case
- icon Spy web
- in Object spy I give URL
- choose browser - chrome or mozilla
- error
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The last year it was ok, no problem. I now problem, Re-install of katalon didn´t help me.
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Also seeing this same issue with Spy Web and Record Web tools (for Chrome and Firefox). IE works for me. I am able to Run and Debug tests using Chrome but the Spy and Record tools will not launch the browser.
Hi all, please check again folder when installing the browser, should be chosen default for install.
I tried many time to reproduce it from my side but failed 
Hi. Thank you for trying with this issue. I’m not sure how to tell the spy ‘version’. I’m using Katalon Version: 5.10.1 Build: 1, on Windows 10. The browsers are installed in the default locations.
My reply had been edited… The browser is installed in the default locations and the issue still occurring?
Okay both Firefox and Chrome are now launching for me. I uninstalled Firefox and reinstalled to C:\Program Files. (it had been installed in appdata folder). For Chrome, there is no option to install to a different location, so I just uninstalled and reinstalled and it now works. A little unsettling that that happened when it had been working fine for months but I’m up and running now. Thanks.