14482.214:0088:00b8:err:module:find_forwarded_export module not found for forward 'msxml3.DllGetClassObject' used by L"C:\windows\system32\msxml2.dll"
14482.214:0088:00b8:err:ole:COMPOBJ_DllList_Add couldn't find function DllGetClassObject in L"C:\windows\system32\msxml2.dll"
These line suggest that setting msxml3 to builtin would help here.
This appears to be a proton-specific issue. The game runs fine for me if I run it in its own prefix with wine-tkg 5.13 (other versions will probably run fine as well though) and native xaudio2_6 (otherwise much of the audio is missing, though the game still runs).
On an initial start the GFWL redistributable is installed into the WINEPREFIX.
During installation the GFWL 'WLIDSvcM.exe' is started and never stops, which seems to prevent the game from starting
(you cannot even start winetricks if it is running...)
You could remove the directories
"Program Files (x86)/Microsoft Games for Windows - LIVE"
and
"Program Files/Common Files/Microsoft Shared/Windows Live"
and make sure that the exe is not running and try if that helps.
I just updated steamtinkerlaunch to v1.3.8 which has automates this and also checks if xliveless is installed (no automatic download, but re-uses a manually downloaded dll if found).
Only played some minutes, but looks like there's no need for xact/xaudio2_6 here, but wouldn't be a problem to add it as well if required.
Compatibility Report
System Information
I confirm:
steam-105400.log
Symptoms
When pressing play, proton starts and immediately closes without visibly starting FableLauncher.exe
Happens with and without xliveless DLL
Reproduction
Press play