OTVDM WinXP build does not work anymore

According to the report: https://github.com/otya128/winevdm/issues/355 it worked a while ago. Now we have funny stuff in LOG (Sorry unfiltered one, check the end) and errors from OTVDM itself. Win2003 the same version works fine

Reproduction steps

• install MSVCPP2015 runtimes from rapps
• extract inspace.zip used as 16bit test-app to C:\
• extract otvdm-winxp-1029.zip to C:\
• execute from cmd

  otvdm-winxp-1029\otvdm-winxp-1029\otvdm.exe C:\inspace\setup.exe

Expected result
The 16bit should run, like in 2k3sp2
2k3sp2_1.png
2k3sp2_2.png

Observed result
The app does not run
errors.PNG
out.txt