It's actually the evaluation by dgVoodoo2's DirectDraw7 that's broken. You can disable it in the config app under "Display" or just remove ddraw.dll from Moto Racer 3's directory and rely on native ddraw for FMVs and that check and dgVoodoo2 for game rendering.

Game seems to have double cursor problem in menus in "emulated" modes.

Thanks, yeah Moto Racer 2 also has the double cursor.

I've tried Moto Racer 3 Gold Edition with the current (unreleased) version and it successfully got launched (older versions indeed fails).
The introducing movies weren't rendered though, black screen only. Probably rendered through GDI because even the logo didn't show up (it another old issue, or rather a missing feature).

It's better not to copy DDraw.dll to the game folder, only D3D8. That way it works fine.

As for double cursor, yes, it's an issue that can come with forced resolutions and emulated aspect-ratio-correct appearance. 🙁
When I was debugging such issues formerly, I encountered some tricks done by the Windows compat layer (for the given game) that also fooled dgVoodoo because some parts of the Win32 API didn't work as expected.

Every tested dgVoodoo2 version (2.55.4, 2.62, 2.79.3, 2.81, 2.81.2, 2.82.5, 2.85) has a big problem with Moto Racer 3: sky box textures don't show. Instead, only one color shows. In the screenshot above, the first "fast" race shows a grey color. Without dgVoodoo2 it shows a blue sky with clouds. Second "fast" category race shows a full green sky without textures.

with dgvoodoo2

without it

It should work but it seems to be a floating point calculation inaccuracy in dgVoodoo.
However you can patch the game, search for the byte pattern d9 86 50 70 00 00 in Motoracer3.exe and replace it with d9 e8 90 90 90 90 (with a hex editor).

Btw, the video cutscene playback was also broken, I fixed it in the latest WIP.