Hi Topgun68,
Your vertical.ini file isn't being parsed for some reason. Fix that and you'll fix all. I can't say why it's not being parsed.
I just replicated your mame.ini, and dropped your vertical.ini (renamed extension) in the same folder where mame.exe is, and got this:
Attempting load of mame.ini
Parsing mame.ini
Attempting load of mame.ini
Parsing mame.ini
Attempting load of vertical.ini
Parsing vertical.ini
Attempting load of raster.ini
Parsing raster.ini
Attempting load of source\galaga.ini
Attempting load of digdug.ini
Attempting load of mame.ini
Parsing mame.ini
Attempting load of mame.ini
Parsing mame.ini
Attempting load of vertical.ini
Parsing vertical.ini
Attempting load of raster.ini
Parsing raster.ini
Attempting load of source\galaga.ini
Attempting load of digdug.ini
Video: Monitor 1092878645 = "\\.\DISPLAY1" (primary)
Video: Monitor 146935003 = "\\.\DISPLAY2"
Direct3D: Using Direct3D 9Ex
Switchres(v2.2.0) add display[0]
Switchres: Monitor range 15625.00-16200.00,49.50-65.00,2.000,4.700,8.000,0.064,0.192,1.024,0,0,192,240,448,480
Switchres: Monitor range 18001.00-19000.00,40.00-80.00,2.187,4.688,6.719,0.140,0.191,0.950,0,0,280,320,0,0
Switchres: Monitor range 20501.00-29000.00,40.00-80.00,2.910,3.000,4.440,0.451,0.164,1.048,0,0,320,384,0,0
Switchres: Monitor range 29001.00-32000.00,40.00-80.00,0.636,3.813,1.906,0.318,0.064,1.048,0,0,384,480,0,0
Switchres: Monitor range 32001.00-34000.00,40.00-80.00,0.636,3.813,1.906,0.020,0.106,0.607,0,0,480,576,0,0
Switchres: Monitor range 34001.00-38000.00,40.00-80.00,1.000,3.200,2.200,0.020,0.106,0.607,0,0,576,600,0,0
Switchres: display[0] options: monitor[custom] generation[on]
Switchres: Monitor range 15625.00-16200.00,49.50-65.00,2.000,4.700,8.000,0.064,0.192,1.024,0,0,192,240,448,480
Switchres: Monitor range 18001.00-19000.00,40.00-80.00,2.187,4.688,6.719,0.140,0.191,0.950,0,0,280,320,0,0
Switchres: Monitor range 20501.00-29000.00,40.00-80.00,2.910,3.000,4.440,0.451,0.164,1.048,0,0,320,384,0,0
Switchres: Monitor range 29001.00-32000.00,40.00-80.00,0.636,3.813,1.906,0.318,0.064,1.048,0,0,384,480,0,0
Switchres: Monitor range 32001.00-34000.00,40.00-80.00,0.636,3.813,1.906,0.020,0.106,0.607,0,0,480,576,0,0
Switchres: Monitor range 34001.00-38000.00,40.00-80.00,1.000,3.200,2.200,0.020,0.106,0.607,0,0,576,600,0,0
Switchres: \\.\DISPLAY2: AMD Radeon (TM) R9 200 Series (PCI\VEN_1002&DEV_6811&SUBSYS_048D1043&REV_00)
Switchres: Device key: System\CurrentControlSet\Control\Video\{175D4303-A242-11EC-844B-806E6F6E6963}\0000
ATI/AMD ADL init
AMD driver version 20.10(patched)
ADL functions retrieved successfully.
Switchres: Searching for custom video modes...
Anyway before you go any further: your picture shows that the game is using the second range actually (crt_range1, 18 kHz), so unless you void that one too GM will insist on using it.