I am having a similar, but more complex, issue with launching Trails in the Sky as detailed in this steam community thread.
If I try to launch the game directly through the two options when you click play, or through the launch button in the configuration manager (the second of the two options), steam will change my status to playing the game for a second or two, and then back to in no game. I do not believe I ever saw the process start up in task manager.
The problem other people seem to have is that their save file is not at the location %APPDATA%\FALCOM\ED6\config.ini
I indeed do not have that file. In fact, I did not even have the folders ED6 or FALCOM. If I did what the thread suggests and just modify the settings, or paste the config someone else posted, nothing happens.
Now the details that may help this situation:
If I click the "Save Folder" button in the config manager, nothing happens.
(Most likely the most important one) Both steam, and this game, are saved on my magnetic drive (D:), while windows, and thus appdata, is on my solid state (C:). I would really like to not have to reinstall the game to that drive as well, as it is a fairly small drive.
I have not played this game before this problem arose, on this computer. I played for a couple hours on a different computer, before I got this one.