simFlight forum admin chipping in, from 20-something years of PC support...
Any "malware" that report that includes the word "GENERIC" means that it is something called a heuristic detection and almost certainly a false positive. AVG, unfortunately, seems to be making a lot of these, recently. It's got a long way to go before it catches up NAV/Symantec, though! :)
You can submit the file to AVG for further examination if you wish, but it certainly isn't a "real" verified virus that has been detected. As no other AV package is flagging up the file - or there'd be a flood of posts here - then I'd say you're safe yo unblock it. There certainly used to be a simple right-click in virus vault and select "not a virus" option in AVG... Have they removed that?
Ian P's post in Game executable detected as virus. was marked as the answer