If you want to fix it, the simplest way would be to create the following symlinks in ~/.wine/dosdevices:
ln -s ../fake_windows c: ln -s /home/julian y:
Or to delete ~/.wine
I'm not sure what to do about this, except maybe to add back in support for ${HOME} style vars. It's clear that people are "using" (at least, installing) much older versions than we anticipated.