Do not overwrite the important Matlab function path with a variable. Although this will not be the reason of the error, it is a bad idea and might cause severe problems during debugging.
The error means, that the file could not be opened. Most likely the file or folder name is not correct.
I do not see a relation between the error message and the title "difference between fget1 and fread". As the docs explain, fgetl reads a complete line from a text file, while fread reads a specified number of elements from a text or binary file in a specified format.