No problems within device manager, all ok.
The 'VisionTek Radeon HD 2600 XT AGP' problem is very common with all 3650 AGP cards since Catalyst 9.9/9.10. Even before that, the card would be referenced as a 3600, rather than a 3650. If i do a manual install via driver update within the device properties under device manager, i can pick either the 2600 XT or 3600 (auto install picks 2600 for some reason). I have tried both and still get the same error. It's just using the wrong name and doesn't actually affect the cards performance since they are configured the same.
For some reason, the new 9.11 drivers are full of problems with regard to AGP cards. Attempting to install them via the standard (but now updated) method, results in either the CCC failing to install, but the device drivers install, or CCC installs and the device drivers fail, to which a manual install is required. Also, in previous Catalyst drivers, SmartGart was available, which is an AGP configuration utility for setting bus speed, fast writes etc, but 9.11 removed this. Rolling back to an older driver, the option is no longer available either, despite a complete removal of the ATI drivers, including the use of Driver Sweeper.
I know the card is a trouble maker of sorts since it can not support any kind of openGL (despite claiming otherwise, the AGP variant just breaks all openGL support and attempting to run any results in crashes, distortions and artefacts), and it is not a native AGP card, but a PCI-E card with an AGP Bridge chip (like nearly all modern AGP cards). The lack of first party support from AMD/ATI is a clue as well, but they still release 'unsupported' AGP hotfix drivers.
There is little point in updating my chipset drivers as well (but i have done so anyway), since the last release for this particular board was 2005, lol. Chipset driver includes any AGP updates as well.
I hate saying this, since it makes me sound like yet another 'tech support troll', other games do work fine (minus their own bugs). Borderlands, Dragon Age: Origins, Sacred 2, none report a lack of vram or other DX anomalies. This is why i am somewhat bewildered as to the cause, apart from guessing that Divinity 2 is being a little strict with its minimum requirements.