You need to make sure that file is labeled eqhost.txt, also, make sure you did not save the file as eqhost.txt with the (txt file) dropdown selected, otherwise you just saved it as eqhost.txt.txt, otherwise, the file looks right. so try to delete the eqhost file and redo it, pay attention to the capital letters. it needs to look exactly like this
[LoginServer]
Host=eqemulator.net:5998
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