Why does Mini-Windows 98 start from MS-DOS 7.1, but doesn't start from Integrated DOS Prompt?

[ghost]

i downloaded Mini-Windows 98 Addon for MS-DOS 7.1 and installed on hard disk image in Dosbox-X, if i boot from IMG, Win98 starts fine, but when i set Reported DOS Version to 7.1 , and try to load MiniWindows 98 from Dosbox-X Integrated DOS Prompt, it doesn't load , why?

[Wengier]

Unfortunately, you cannot run Windows 98 from the internal shell at this time. I reported some progress previously in #1217, but because of issues like #1545 ("DOS IOCTL does not support external device drivers") it does not work yet.

[BridgeHeadland]

I want to share my recent, unsuccessful experience booting a pre-installed Windows 98SE from the DOS prompt.

For fun, I added a pre-installed Windows 98SE, with absolutely all the files and folders, Everything that is games, software, drivers and so on were already there and they have not been deleted. Ver in the DOS section was already set to auto, and when I started Windows 98SE, I got the following message: "This version of Windows does not run on MS-DOS 7.00 or earlier.". I set ver to 7.1 as the value, and then I got to something called Microsoft Registery Checker, and there I got the message, with Regestry Repair Results as the heading: "Windows found an error in your system files and was unable to fix the problem. Try deleting some files to free up disk space on your Windows drive. If that doesn't work then you will need to install to a new directory.". I clicked OK, returned to the prompt, and got the following message: "Registry file was not found. Registry services may be inoperative for this session.
XMS cache problem. Registry services may be inoperative this session.
Cannot load a device file that is specified in SYSTEM.INI.

The performance of Windows should not be affected without this file.
C:\WINDOW98\SYSTEM\VMM32\IOS.VXD
Press a key to continue". I pressed a key, and got the following message: "Insufficient memory to initialize Windows.

Quit one or more memory-resident programs or remove unnecessary utilities from your CONFIG.SYS and AUTOEXEC.BAT files, and restart your computer.

Press any key to continue...". I pressed a key and DOSBox-X exited. The same happens when ver is set to 8.0. Windows 98SE works perfectly as long as the correct files are in the image file instead of in the folder with DOS - the games and all.

I see that the last comment is now over a year old, has anything more been done about this matter since then?