I've been investigating the issue, and I found the root cause, it is a problem on my side. I don't know why, some time ago the game started to behave strangely. Every time I launch the game, with or without dgVoodoo, the game displays a couple of message boxes asking whether I want to use the Direct3D TnL Accelerated Device, or the Direct3D RGB Software emulation device (see the attached images). For some reason the game started to think that the RGB emulation is a good device to choose.
If I choose the RGB device without dgVoodoo, the game closes immediately. But If I choose it using dgVoodoo, the game works, but without fog (maybe the game disables it on purpose because it detects the GPU has no fog capabilities, I don't know). Now, with the new "Disable TnL" option, as the TnL HAL is not enumerated, the game doesn't show the message boxes and defaults to the RGB device, so it works fine but without fog.
If I create a new user account, the issue disappears, the game stops showing the message boxes and everything works as intended. But when I log back to my main account, the problem comes back. Seems pretty obvious I must have some weird setting on the registry or some configuration file, maybe I touched something in the past, I will take a look when I have time, as it is very weird.
Anyway, it's not dgVoodoo's fault, and it is working fine, so you can consider the issue solved. Great work!
PS: when I have some free time I will complete the game a couple of times, trough different routes, to check if everything is rendered as expected.
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