I'm running this game on Windows 10, screen keeps flickering, DxWnd windowed mode didn't help. It shows last windows I was focused on. Did any of you encounter and fixed that issue?

I have exactly the same issue. I am also running Windows 10, and whatever the last focused window was will ALWAYS be flickering through the game. I also have the issue that after I quit the game, it will continue running in the background and I have to use Task Manager to kill it.
I hope there is a fix for it. :(

I tested the game on a Windows XP machine last night and it works perfectly there. But we should also be able to run this on a Windows 10 machine too.

Okay, after my spouse played around with it, the flickering gets a lot less when the game speed is turn down to the slowest. It's a lot better now.

This solution is probably a little late, but there might be others whit this problem. I encountered the problem myself. The flickering of the screen is due to your Windows explorer. A lot of the older games have this problem.
The good news is that it is easily solved. Underneath I posted the code for a bat-file that will start the game for you, without flickering.

For those who don't know how to create the bat-file:

1. Make sure you're file extensions are visible:
- Open your config screen -> File Explorer Options
- In the View tab, UNCHECK 'Hide extensions for known file types'
- Apply

2. Create the bat-file
- On your desktop, right click and select New -> Text Document
- Name the file Lula.bat. Make sure the .txt (extension) is gone from the name.
- Save (Tell Windows 'YES' when asked if you're really really sure you want to change the extension)

3. Add the code
- Right click on the lula.bat file and select Edit.
- Notepad opens, copy the code underneath into it
- If your game is on a different drive then C:, replace the <drive letter if not c> with that drive letter. don't forget the colon behind this letter! If your game is on the C:, just delete the line (or put C: in there, both will work)
- Replace <PATH to the install folder> with the path to the install folder MINUS THE DRIVE (so your path will look like: Directory\directory\... ). Dont forget the CD in front of the path
- Save

4. Play Lula
- Start the game by double-clicking the bat-file you've created.
- Have lots of fun playing the game

Good luck :-)

BAT FILE CODE:

@echo off
taskkill /f /IM explorer.exe
<drive letter if not c>:
CD "<PATH to the install folder>"
WET.EXE
start explorer.exe