Can you take advantage of the new installation and dismiss the non-working one?
If you are still interested in finding out what is wrong in your local installation, only the log on the Adapter can help us.

The only possible guess, at this stage, is that, actually, the Remote Server in your local installation is not using the previous .NET Adapter library (1.7), but the new one (1.9).
In this case, the "init_remote" setting as false causes the Remote Server to get a fatal error upon the first client request and to close the socket towards the Server and fail.
Unfortunately, this does not give rise to the error you reported.
But, perhaps, your launcher code ignores the error notification and this may cause the socket to remain open but unresponsive.
The latter behavior could explain the timeout error reported in your Server log.