If you are using it properly, perhaps the kernel32 modifications made it too big to fit at its preferred address. Relocation caused a conflict with ntdll. It needs to be trimmed down and stripped of relocation data.
Cid starting doesn't mean that it works completely.
Test with ImportPatcher set to Vista (is that the mode you're using?) and also try redirecting to msvcr120.
Take MiniSnaps for each configuration that loads enough to allow it.
The c runtimes msvcrt and ucrtbase are failing to load/attach.
What version of msvcrt is it?
Has ucrtbase ever worked? If not, debug it separately or don't use it.
Perhaps trying to boot from floppy (a:) first would create the delay needed for the CD drive to fully spin up.
Or in bios change the CD drive interface mode to "auto".