Just an update:

I noticed that I only experienced the problem while in fullscreen mode. If you put FS2000 in fullscreen windowed mode, the instrument panel and 3D view looked just fine. The problem with this is who the heck wants to see a WinDoZE titlebar while flying 🤣?!

I experimented with various Direct3D and DirectDraw wrappers (such as DDrawCompat), but experienced fairly bad performance issues. DDRawCompat fixed the problem in fullscreen mode, but my framerate in the game went to pot.

I then discovered that the utility AutoHotkey has a provision to REMOVE the Windows titlebar from any program or game running under Windows 10. So, I wrote up a little AutoHotkey script and compiled it... it works PERFECTLY for FS2000! The problem of the instrument panel and 3D view is now fixed (due to running FS2000 in a fullscreen window), and I don't have to look at that INFERNAL WinDoZe titlebar 😀

This would ALSO be a solution for folks having issues with framerate in Combat Flight Simulator 2 when running it in fullscreen mode. A lot of people (myself included) have discovered that CFS2 has MUCH BETTER framrate when run in fullscreen windowed mode instead of fullscreen mode under Windows 10. This AutoHotkey script ALSO works for that as well 😀

Anyhow, attached is a ZIP with the script source and compiled script. Directly from the included readme:

Windows Titlebar Remover ------------------------ This simple AutoHotkey script will remove the Windows titlebar from any progra […]
Show full quote

Windows Titlebar Remover
------------------------
This simple AutoHotkey script will remove the Windows titlebar from any program
or game running in windowed mode under Windows 10+. This is perfect for games
(such as Microsoft Flight Simulator 2000 or Combat Flight Simulator 2) that
don't render properly (or suffer from poor framerate) when run in fullscreen
mode under Windows 10+, yet function well when run in a fullscreen window.

This AutoHotkey script doesn't suffer from some of the performance issues that
DDrawCompat (or any other Direct3D or DirectDraw "wrapper") may introduce when
attempting to accomplish the same thing.

After running the program or game and putting it in fullscreen windowed mode,
press the left Windows key and the left mouse button simultaneously to remove
the Windows titlebar. Press the left Windows key and the right mouse button
simultaneously to display the Windows titlebar.

Note that if you run a program or game as an administrator, or have any of the
various Windows compatibility modes enabled, you will need to execute this
AutoHotkey script as an administrator for it to function when running the
program or game.