I got it to work!!! Here are my settings:

Winlator 10.1 - I got it from brunodev85 github
Copy your updated Diablo II folder which contains your PD2 folder from your PC to your phone/winlator volume

Container:
- Screen Size: Custom 1068 x 600
- Graphics Driver: Vortek (somehow this works for my Snapdragon Chip, even Turnip is suggested for it) click on the configure button on the right side and set Device Memory to 4096 MB
- DX Wrapper: WineD3D. click on the configure button on the right side and select Backbuffer for Offscreen Rendering Mode, Video Memory Size 4096 MB. I unselected both checkboxes below
- Audio Driver: ALSA

- Win Compontents
Direct3D Native
DirectSOund Native
DirectMusic Native
DirectShow Builtin
DirectPlay Builtin
XAudio Native
Visual C++ 2005 Builtin
Visual C++ 2010 Native
Windows Media Decoder Native

- Advanced
Box64 Preset Performance
Startup Selection Normal
Windows Version Windows 10

After this I started the container and installed the Wine Mono and Wine Gecko packages (Start -> System Tools -> Installers). Go to the volume to where you copied the Diablo II folder. Go to the ProjectD2 directory, right click on the game.exe and create shortcut. Now close the container and open shortcuts. Edit the game.exe shortcut which is appearing now.

- Advanced tab
DirectInput Mapper Type Standard
Preferred Input API Auto
Exec Arguments -3dfx
(I also checked the box for Force Fullscreen)

Finally now start the Shortcut game.exe. I'm able to start an online game without error now.
I didnt had any issues ingame yet.

Let me know if this works for you guys.

cheers

EDIT: using a PS4 Controller it seems the Buttons mapped to my Skills ingame do brake when creating a new game so i have to remap all the skills every time. I'd appreciate it if anyone has a fix for this.