Have you considered inserting disc 2?
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That was going to be my guess. They really should have tried that first.
My day job is to Google things. Here you go. https://www.reddit.com/r/GTA/comments/85o017/gta_iii_problem_please_insert_gta_iii_disc_2_into/. Apparently this guy had to delete some file in and the game folder. You should try that
My day job is to Google things.
I also am a software engineer.
Close I'm in Support not Dev
I remember running into this issue back in the day. I think it happens when a mod corrupts game filed and I could only fix it by doing a clean reinstall and avoid the mod that was causing it. Reading through the comments on the Steam guide there are others who ran into this issue and at least one of them got it working by doing a clean install and trying again.