This happens to me for the SMILES string I generated for naphthalene with either openbabel (c1cccc2ccccc12) or RDKit (C1=CC2=CC=CC=C2C=C1). Is this an error with the SMILES strings or is there something wrong with my Avogadro?
Can you launch from the terminal and take a look? For example when I launch my dev copy, it shows: OBProcess::executeObabel: Running "…/prefix/Avogadro2.app/Contents/MacOS/obabel" "-ismi -ocjson --gen3d"