How to fix "please insert disk into the drive" error with the Steam version of GTA 3?

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I can't launch the game. The Steam version obviously doesn't use physical disk and the error appears to be caused by leftover disk-check DRM.
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I have a bug where my menu is transparent....Give this a try:Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
Images: Artem Podrez, Artem Podrez, jae park, Andrea Piacquadio