What happens if you run C:\Program Files (x86)/Steam/steamapps/common/wallpaper_engine/wallpaper32.exe?
If it says MSVC..120.DLL missing:
Uninstall all Microsoft Visual C++ 2013 Redistributables from Windows (look in the Windows programs).
Reboot the PC.
Install these:
C:\Program Files (x86)\Steam\steamapps\common\wallpaper_engine\_Runtime\vcredist_x86.exe
C:\Program Files (x86)\Steam\steamapps\common\wallpaper_engine\_Runtime\vcredist_x64.exe