I was pretty sure that GTR2 wasn't the problem, and I had filed a report with Microsoft to no avail (duh) and I didn't know where else to turn. The problem started several months ago after one of their updates. I'm still not sure what the issue truly was, but I'm leaning towards the crew chief plugin that I had attached to the steam version and can't seem to get rid of.your error messages are unusual with gtr2, I think your issue doesn't come from gtr2 itself but it could be a plugin or driver problem ???
If you have a d3d9.dll in gtr2 folder then try to delete it.
Did you install Microsoft DirectX9 ? Try to reinstall it.
Anyway, long story short I remembered that I have a clean install off of the GTR2 disk I bought some years ago when I realized the steam version was missing several cars, and I wanted an actual hard copy of the game anyway. (I took several college courses on computer programming in the late 80s and came away with a certain amount of distrust for computers to screw things up in general that I have never really gotten over.) And I had a copy of that on my old gaming laptop. ( My current computer doesn't have a cd drive) So I transferred that to my external hard drive and ran it just to make sure it still worked after everything that had happened so far. Installed it and then installed the latest update double checked everything twice then restarted my computer and ran the game with the debug app you give, And now it works!!! fuc&ing yay!!!
So many many thank you's to @GTR233 for all your help, as I think this forum would be lacking without you here.