I think I actually fixed it

Torch.Server/Program.cs

@@ -2,6 +2,7 @@
 using System.Diagnostics;
 using System.IO;
 using System.IO.Compression;
+using System.Linq;
 using System.Net;
 using System.Reflection;
 using System.ServiceProcess;
@@ -21,12 +22,20 @@ namespace Torch.Server
         [STAThread]
         public static void Main(string[] args)
         {
+            
+            
             Target.Register<FlowDocumentTarget>("FlowDocument");
             //Ensures that all the files are downloaded in the Torch directory.
             var workingDir = new FileInfo(typeof(Program).Assembly.Location).Directory.ToString();
             var binDir = Path.Combine(workingDir, "DedicatedServer64");
             Directory.SetCurrentDirectory(workingDir);
 
+            //HACK for block skins update
+            foreach (var f in Directory.EnumerateFiles(workingDir, "System.*", SearchOption.TopDirectoryOnly))
+            {
+                File.Delete(f);
+            }
+            
             if (!TorchLauncher.IsTorchWrapped())
             {
                 TorchLauncher.Launch(Assembly.GetEntryAssembly().FullName, args, binDir);