Chrome has had the insecure behavior for years. Not sure if it does currently.
The above works regardless of how the admin has defined the search path. It's a legitimate vulnerability. Installers specifically should be hard coded to only use Windows DLLs from the Windows directories.
Realistically, Google Chrome should be fixed to not be so dumb and insecure with EXEs and DLLs as well. It may have been by now but it was definitely vulnerable when NSIS fixed this exploit and it was the primary attack vector since browsers like Firefox don't allow websites to automatically download infected DLLs to your Download directory.
The thing is, there was a random guy who considered that a security issue and he started posting vulnerability reports and asking for bounties on quite literally EVERY software existing on the planet. e.g. firefox, chrome, internet explorer, nsis, inno setup, and many popular open-source applications (because of course, EVERY software is affected since the 30 years windows and all other OS doing the exact same thing have existed).
It was a sort of epic scale hoax. (even though it's factually true that DLL are loaded from the current directory).
That will lead to a whole generation of people who will read the reports and be mislead into thinking that this was a major security failure discovery.
I also like InnoSetup, and its Pascal scripting is certainly more straightforward than the NSIS Assembly-like coding, but NSIS has served me very well.
The primary market for one of my products is elderly people, and the fact that I get almost zero setup-related tech support issues from that market tells me a lot.
And yeah, my existing installers work just fine with Windows 10, so I assume they just added some Windows 10-specific features.