Based on the information provided, it seems like the cause of the application error while playing Terraria is related to a faulty or corrupted ntdll.dll module. This module is an essential system file that is responsible for various system functions, and if it is damaged, it can cause issues in different applications.
Here are a few troubleshooting steps that you can try to resolve the issue:
1. Update or reinstall the drivers: Make sure that your drivers, especially the sound and graphics drivers, are up-to-date. You can check for the latest updates on the manufacturer's website and install them accordingly.
2. Repair or reinstall the game: Try to repair the game from the Steam client. Go to your Steam library, right-click on Terraria, choose Properties, go to Local Files, and click Verify Integrity of Game Files. If that doesn't work, you can try uninstalling and reinstalling the game.
3. Scan for malware: Malware or viruses can cause various system issues, including application errors. Run a full system scan using your preferred antivirus software.
4. Check for corrupt system files: Use the Command Prompt to check for corrupt or damaged system files and repair them if needed. Open the Command Prompt as an administrator and type in "sfc /scannow" and press Enter. Wait until the scan is complete, and restart your computer.
5. Perform a clean boot: A clean boot will help you disable all the third-party applications and services that may be causing the issue. Follow the instructions in this Microsoft article to perform a clean boot.
6. Try running the game in compatibility mode: Right-click on Terraria.exe, choose Properties, and go to the Compatibility tab. Check the "Run this program in compatibility mode for" box and choose a previous version of Windows.
7. Reinstall Windows: If none of the above solutions work, you can try to reinstall Windows as a last resort. This will erase everything on your system drive, so make sure to back up your important files before proceeding.
Hopefully, one of these solutions will fix the application error you are experiencing while playing Terraria. Good luck!