Same issue!

Try starting the game via a terminal window instead of steam. It should display a crash message telling you what went wrong. In my case it was the "controlled folder access" feature of W10 that was preventing the game from starting.

I just had this problem too on Windows 11 Home too but was able to solve it with some help.

I first ran through this checklist of possible fixes:
1. I first made sure my antivirus had the Shenzhen I/O folder & exe in my whitelist.
2. I then made sure my graphics drivers were up-to-date.
3. I checked to make sure I wasn't running any software other users had found to interfere with Shenzhen I/O (MSI Afterburner and RivaTuner Statistics Server).
4. I set the folder and contents to not be read-only.
5. I tried running the game as Administrator.

I then emailed tech support (sticky in this forum) and was able to fix it!

SOLUTION: It turned out that Microsoft OneDrive had my save directory (C:\Users\<MYUSERNAME>\OneDrive\Documents\My Games) stored only in the cloud (visible on my computer but not accessible) and I had OneDrive disabled. Thus, my computer could see the save directory, but could not read/write to it at all. Shenzhen I/O was then not able to access the save directory at all which caused the game to never start. Once I turned OneDrive back on (and set the "My Games" directory to "Always keep on device" for OneDrive), the game started right up.

Also, shout out to the great, Zach, himself who suggested the save directory might be the issue via email!!! Thank you!