Here's the files for my bug report, although keep in mind I'm one of the "pure Steam" users so it's possible my issue is related to that Microsoft problem you mentioned. I also did the converter thing, but deleted it and reinstalled FF7 when I saw the comment that it wasn't needed, and now I'm still able to run R06 through Steam when I couldn't before...so I'm not sure if I actually properly got rid of the converter or not. Hopefully this report is actually helpful and not a waste of anyone's time!
1 - During the rescue mission for Aerith in the Shinra building, there's a soft lock during the scene after the player goes up the small elevator to the 68th floor to confront Hojo. After Hojo says there are too many frivolous things in the world to concern himself with the group, Barret runs forward and Cloud moves down, then raises his arm. The game soft-locks at this point because Barret never finishes running forward; visually, he's stopped right at the railing before the stairs heading down to the specimen area.
2 - Happens 100% of the time with this save - Save slot 1, save #3 (Shina Building 67th floor) - just go up the elevator and then move south to start the cutscene with Hojo.
3 - Couldn't figure out how to add attachments, so here's my APP.LOG -
https://pastebin.com/9eDmSMez4 - The_Reunion.log -
https://pastebin.com/Z6GDfE705 - Save file -
https://www.sendspace.com/file/15xegh It should be the third save in slot #1