I'v tried the "arc2txt" and it works well (see attached picture).
Try to load it in Visual Lisp IDE, select in card Debug -> Break On Error, then run LISP and see where the error occured. Also, there is a "Arc Aligned" function in "Express Tools" (if you have it in your version of CAD) or just type a ARCTEXT command which is better then posted LISP.
Best regards.