I tested the notebook and got the same error independant of the number of options.
I use Windows 10 with :
{1 -> {"Name" -> "Quadro M1000M", "Clock Rate" -> 1071500,
"Compute Capabilities" -> 5.`, "GPU Overlap" -> 1,
"Maximum Block Dimensions" -> {1024, 1024, 64},
"Maximum Grid Dimensions" -> {2147483647, 65535, 65535},
"Maximum Threads Per Block" -> 1024,
"Maximum Shared Memory Per Block" -> 49152,
"Total Constant Memory" -> 65536, "Warp Size" -> 32,
"Maximum Pitch" -> 2147483647,
"Maximum Registers Per Block" -> 65536, "Texture Alignment" -> 512,
"Multiprocessor Count" -> 4, "Core Count" -> 512,
"Execution Timeout" -> 1, "Integrated" -> False,
"Can Map Host Memory" -> True, "Compute Mode" -> "Default",
"Texture1D Width" -> 65536, "Texture2D Width" -> 65536,
"Texture2D Height" -> 65536, "Texture3D Width" -> 4096,
"Texture3D Height" -> 4096, "Texture3D Depth" -> 4096,
"Texture2D Array Width" -> 16384,
"Texture2D Array Height" -> 16384,
"Texture2D Array Slices" -> 2048, "Surface Alignment" -> 512,
"Concurrent Kernels" -> True, "ECC Enabled" -> False,
"TCC Enabled" -> False, "Total Memory" -> 2147483648}}
Driver version 442.19
CUDAFunction::liblnch: During the evaluation, an error LIBRARY_FUNCTION_ERROR was raised when launching the library function.
However I updated my driver to version 442.92 and now it's work a little bit.
with 256 options no problem. With 512 it starts generating the error message again.
With a fresh kernel and 512 options it works one or two times and then the error message appears again.
I would call Wolfram Support.