Your description of steps is excellent, thanks for being so detailed!
A quick clarification: The task tray icon is not KA Lite itself but a utility to start/stop KA Lite. Running it from command line is an alternative to using the system tray - but this method shows us detailed output.
At present, I think there’s a problem in the daemon mode, and maybe something that’s specific to Windows 10. So I wanna know why KA Lite doesn’t work when you navigate to the KA Lite URL in your browser, while KA Lite says it’s running in the background. It seems it might crash at the very first page visit.
In this step4, try running kalite start --foreground. This way it won’t go to daemon mode, it will just start and keep running as long as the command line is open. While it’s running, try navigating to http://127.0.0.1:8008 in your browser. If it still doesn’t work, please paste the command line output, perhaps it contains the reason of a crash…