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Full screen works with all my other games. I don't know why it would not work with one specific game. Other games typically have an in game menu with options for full screen and resolution. I did notice that in the launcher general settings the box above where you check full screen never has any data. Does this mean anything ?
Shouldn't be any problems with Acer monitors, I have 2 here, work quite happily on Display Port or HDMI without needing any drivers, never bothered installing them as works fine with the standard Windows configuration on Win10 and Win11 and with a KVM setup.
Another thought?
This isn't a Preditor laptop by any chance? with an Nvidia GPU? May need to go into Nvidia settings and specifically tell it that Trainz is a game, may actually be running on internal Intel graphics from the CPU which may explain the problem?