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You will need to pass in a .bin instead of a .hex file of the application to BTool when using OAD.
If you cannot find a .bin file in your project output directory, you can manually create a .bin file from the hex image by using the TI OAD Image Tool. More information about the tool and how to use it can be found in section 7 in the CC2640 BLE OAD User's Guide.
From a closer look at the BTool user interface, I believe you are using an incorrect BTool version. Per what is stated in the OAD user's guide:
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1.5 Supported OAD Downloaders
The recommended OAD Downloader for use with this document is BTool v1.41.17. This is different than the BTool version that is bundled with this BLE-Stack install. You can download BTool v1.41.17 from CC2640R2 SDK Download Link. This specific version of BTool has been selected because it has support for the legacy TI OAD profile and the HCI command set supported by v1.41.17 is the most compatible with the CC2650 LaunchPad host_test image.
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Unfortunately our SDK download page does not directly list the SDK version that contains the above mentioned version of BTool anymore. However, here is a direct link to the CC2640R2 SDK which has BTool v1.41.17: https://www.ti.com/tool/download/SIMPLELINK-CC2640R2-SDK/1.35.00.33
