Ok, So I got this figured out.
The thing is, when boost library was removed two years ago, it removed the ability to navigate on UNC folders too.
I thought that this was really strange since EmulationStation can still loads the gamelist.xml on my Server but couldn't load anything else, but, I found a pre 2.7.4 build (that still has boost library) and now everything works :)
Right now I'm running a really old 2.6.4 build. If anyone here has a 2.7.3 build saved, please share with me, I would really appreciate.
After an evening of pondering this, I have figured out what I did to screw it up. I have created multiple images of RetroPie setups that were reasonably customized and saved piles of things I referred to as "Clean" associated with those. (For example, known good ROMS, BIOS, and Meta Data like Scraper results.)
What happened was that I missed a step trying to recreate my steps. So here's the abbreviated version of what I did that messed it up.
Wrote the correct, unaltered, unupdated 4.5.1 image to the SD card (I really couldn't believe I would have written the wrong image).
Copied vast amounts of "Clean" altered configs (for a setup that was designed for SNES controller compatibility, and thus didn't use PSX).
Boomie. (At this point, I believe my copying of configs was all it took to scramble it up.)
It should have been obvious when the pixel art launch screens came up (part of the config I just copied), but I honestly recall thinking "Oh cool, 4.5.1 uses the same pixel art things I liked for launching games."
Thus, to your point, I had 4.5.1, with a bunch of 4.4 config wedged in manually after the fact. Worse, because my previously configured system never used PSX (not enough RasPi power when I created it, and not enough buttons when using SNES controllers), I had no idea that there might have been a bug with it that had been hiding in what I was copying.
EDIT: OK, so I double-checked the md5s of the bios files that i have downloaded BEFORE and AFTER sending them to the pi (just in case they would get corrupted as they were sent or something) they matched on winmd5 just fine.
lr-pcsx-rearmed can use only scph5501.bin from the list of BIOS files you have, and that file has a wrong MD5 in your screenshot - it's not what's in the docs or what the core expects.
Unfortunately I can't get a copy of the game to test, but can you just get a RetroArch log file and put it on pastebin.com - enable Verbose logging in the Runcommand launch menu, run the game for a while, then upload the /dev/shm/runcommand.log log file to pastebin.com and paste the URL here.
Yeah, lr-vice virtual keyboard is flawed, it seems an hit or miss, game sensitive. On older version there was no way to activate cursor, so better than nothing.
It is better to use usb keyboard for sure.
@meleu: I've added version in my initial post (sorry to have not posted this earlier)
@jdrassa: the scrolling was restarting at the beginning but you point me to the right solution. By disabling Power Saver Modes in EmulationStation option, the scrolling is perfect as before now (goes to the bottom, pause for a sec or 2 then start from the beginning).