Relative file paths
WORDLIST_FILENAME = "E:/My Documents/Programming/Projects/Hangman/words.txt"
should be modified so that it's relative. The easy thing to do is make it relative to the current directory and assume that the current directory is that of the project, but that's a little fragile. The more reliable thing to do is make this relative ...
I wasn't able to figure out a way to make the code more compact and in my opinion the code is pretty clear. However I do have some other feedback.
Use a proper main
turtle.setworldcoordinates(0, 0, 4, 255)