Here`s the trick - Right click the Vic cartridge game in Launchbox, and choose "Edit". Click on the Emulation tab. Check the box marked "Use Command-line parameters". Type in "-cartgeneric" into that field.
Vic20 cartridges will suddenly work fine in VICE Vic20! I am using Version 3.2.
Another tip, if you're looking for an easy way to exit Vice with the escape key, try the following, which I discovered at https://www.lemon64.com/forum/viewtopic.php?t=33372&sid=af3ea6ae0b8c6a35f2278b5d18f69d33
Find the file win_shortcuts.vsc, located in the Vic20 folder and open it with a text editor (for example Notepad).
Add this line to the table:
Code:
KEY 27 IDM_EXIT X
Vice can now be terminated with the Esc key.