Are you entering the exact path to the butler executable – e.g. C:/some/folders/and/then/butler.exe – or did you add it to the %PATH% environment variable?
Since the error just says “butler not recognized […]”, this sounds like the latter.
You should check that PATH is actually set correctly in your terminal. If you’re using cmd, this will print it out:
echo %PATH%
If you’re using Powershell, run this:
$Env:Path
If the path to the butler executable doesn’t show up in there, then something’s wrong. You do need to open a new shell after editing environment variables, in case you haven’t tried that yet.
Also, one thing to note: the path you add should be the directory containing the butler executable, not the executable itself. So, the first one is wrong, and the second one is right:
C:/something/itchstuff/bin/butler.exe
C:/something/itchstuff/bin/