Try the following edit to your INI:
Since you claim to be using the GOG version of the game, there’s no reason to enable Special K’s Steam stuff. It’s amazing how weird these things get when you take a game from GOG and Special K sees that it ships with SteamAPI and starts using it, and then the game blows up.
It happens A LOT. Game developers really should not be shipping support libraries for other stores with their games. This works in reverse too, I have a bunch of Steam games that boot up Galaxy.dll even though I don’t even have GOG Galaxy installed anywhere on my system.