@mitu I had the same issue. It would always ask for a password on first game only. I followed the guides to no avail and found my problem was where in the file I put the user. It must go at the end of the sudoers file after the #includedir line. Once I did that it loaded without asking for permission. I doubled checked by rebooting and running emulationstation again and it loaded as expected. Hope this provides some clarity. This StackExchange thread is where I finally figured out my error.

@paulnmiller1 Yes, changing video driver to sdl2 in RetroPie Setup as suggested by @mitu worked immediately.

Sorry it took me a while to copy some roms over and check everything out but yeah they played normally.

@mitu I see. I'm able to install Vice using Ubuntu app center. I wonder if I could copy binaries and libs to the /opt/retropie/emulators/vice ...

@macsgv Thanks, but any chance you could do a quick writeup?
I hate "watching" tutorials on principle - plus it's in Spanish and does not seem to refer to lr-hatari anyway.