Can outdated or incompatible mods or utilities lead to 'Fatal Error' crashes in VRChat, and how do I troubleshoot this?

Yes, mods and utilities can definitely cause crashes. Disable any mods or utilities you're using one by one to identify the conflicting software. Check for updates for those mods and utilities and install them if available. If the issue persists after disabling all mods, try a clean installation of VRChat and avoid reinstalling the mods initially to confirm they are the root cause.