If your graphics card allows it, you can try increasing the allocated video memory:
Windows sometimes forces GTA 3 to run on the because it doesn't recognize the game. Integrated chips are terrible at old texture conversions. gta 3 cannot convert textures your video card
Historically, this error was notorious among users of 3dfx Voodoo cards. The Voodoo line was already dying out when GTA 3 launched, but many gamers still used the Voodoo 3 or 5. These cards used Glide API, while GTA 3 was optimized for DirectX. The cards could not natively handle the texture compression formats the game demanded, resulting in the infamous "cannot convert" message. It became a litmus test: if you saw this message, you knew your hardware was either too old or too obscure for the game. If your graphics card allows it, you can
Use driver or OS rollback