I searched for this, but nothing quite came up like it.
This is the second time this has occurred to me, in a previous version, though I forget exactly which previous version, though I suspect regular 40d. I will describe the bug in 40d9, however.
I entered the "Design New World With Parameters" section. I then started modifying the advance parameters of the preset "Large". I changed 5 things: I set the end date, normally at 1050, to 900. I changed the temperature minimum to -30, and the maximum to 90. Minimum volcanism was set to 50. I also changed the number of wetland tiles briefly, then changed them back to their default before world generation. I saved and started to generate the world.
I got nothing but a mass of green n's with instantaneous rejections. I aborted once it came to nearly 300 rejections. Thinking the most important change was the temperature, I set both the X and Y temperature variation to 800, not exactly knowing what that would do. I saved, and there was no effect. I tried repeatedly, to no avail. I re-entered the advanced parameters, loaded a previous version of DF (40d, instead of 40d9), and ensured that I had every parameter set to their default on my 40d9 version. I started world gen to make sure... but all I had was green n's. I started the world gen on 40d, and it perfectly generated a new world. After triple checking in game, I decided that there must be a text file with the information. I dug into both files, found the world_gen.txt for each one, and found what appears to be the culprit.
I checked both versions, and they seemed to be exactly the same... however, at the end of the LARGE parameters for 40d9, I got something like:
[EN_SU]:200:200:200:200:200:200:200:200:200:200:200:200...
There were MANY [EN_SU] (could have been _SL or something else) entries with many more :200's than I displayed. There was also a different type that had :50's instead.
There were so many of these that the world_gen.txt file for 40d9 was around 1200 kilobytes, WELL over what it should have been. I deleted every suspicious entry seeing that my other version didn't have them. I then copy pasted the LARGE parameters from 40d to 40d9, saved, and retried to world gen on 40d9. It worked perfectly.
I have since tried to reproduce the bug, going step by step, but it appears the game will still operate the world gen fine. Though I am getting many rejections, I at least see some development, rather than a green sea of n's.