We managed to find the issue ‒ the port needs the file ALBION.EXE in the root directory, but in some versions, it is named MAIN.EXE. Simply rename (or copy) MAIN.EXE to ALBION.EXE and it will work.
Another issue is the CD path. As described in the readme, it needs to be relative, so if the CD root is in the CD\ALBION folder, just open SETUP.INI and set SOURCE_PATH=CD\ALBION. This has the added bonus of making your installation portable. 😉
Lastly, these display settings worked the best for me, in Albion.cfg:
Display_ScaledWidth=1080
Display_ScaledHeight=720
Display_Fullscreen=yes
Display_Enhanced_3D_Rendering=yes
Display_MouseCursor=normal
Display_Scaling=advanced
Display_AdvancedScaler=normal
Display_ScalerFactor=max
