CPU: AMD Ryzen 7 7800X3D
GPU: NVIDIA GeForce RTX 4070 Ti
Windows 11

Ok, here's the fix for this. This happens because the game only works with the PS PC SDK v2.5.0, and after first run, it updates automatically to v4.0.0 which seems to be incompatible. What we have to do is delete the 4.0.0 version and disable autoupdate:

Delete the folder:
C:\ProgramData\Sony Interactive Entertainment Inc\PSPC_SDK\S22\4.xxxx (removes the v4.0.0 SDK)

Rename the following file:
"C:\ProgramData\Sony Interactive Entertainment Inc\PSPC_SDK\S22\2.50.00.10\PsPcSdkUpdateChecker.exe" ... to anything else, like: PsPcSdkUpdateChecker_bkp.exe

Now the game should always start. You still have to force stop it in Steam because it is detected as running because the PS PC Runtime remains loadad even if you exit the game, buit this just a minor nuisance.