You say Everquest 1999. You don't mean Project 1999 (P99), right? Because for that you will definitely need a Titanium client, RoF will not work on that server.
Otherwise, RoF certainly works fine on Win 10 though I would recommend RoF2 client. Your shortcut looks correct, but I am not familiar with using the Steam version of the game and it would kind of surprise me if this worked as Steam is notorious for obsessively updating all games to their latest versions, which is really not what you want for EQEmu - that's the whole point of the 'patchme' in the shortcut, it tells it not to patch the game to the latest (live) version but instead launch as-is.
Host file is also correct.
Your error is clearly a dx9 error so you could consider downloading dx9's runtimes to be certain you have all the right files. It's pretty dated now so if you don't play many older games it is possible you do not. Link:
https://www.microsoft.com/en-au/down...s.aspx?id=8109