I tested it on Mega STE, TT and in Steem of course - and works well, even if no floppy drive attached. Tried today on Falcon and there appears the problem you described. I tried couple things, but did not help. Game has some very weird code to determine from which drive is ran, instead just using current path. So, will need more time to find what is exact problem on Falcon.
Considering Steem: Steem 3.2 set to 4MB RAM, TOS 1.04 or 2.06, with GEMDOS drive as H or C , then hard disk emulation via Pasti - drive C - works in all those combinations.
What is your Steem version, and how is set ?