Disable other modification software
Windows comes with a plethora of modification and configuration software, and the good thing a=is as these work with each other, without any issues. But Wallpaper Engine has been reported to cause issues when other modification software is installed.
The list includes Fences, Rainmeter, Flux, etc. If these apps are installed on your PC, then the Wallpaper engine will not work partially or entirely. So it’s a good idea to disable or uninstall them if you don’t need them.
Disable WMP option
WMP stands for Windows Media Player which is the reason why you can easily play video files on your computer. Although the Wallpaper engine has its own video encoder and decoder so it doesn’t need WMP support. But WMP still causes numerous issues, so disabling it will help to fix the problem.
In the Windows search bar – search for “Turn Windows features On or Off”.

Navigate to Media Features > Disable Windows Media Player

Save the settings and reboot your PC. Now Wallpaper Engine will start working on your second monitor
GPU scaling disabled
GPU scaling helps to scale wallpapers or any graphics to your computer screen. If this is not disabled, a few features from the Wallpaper engine will not work correctly.

GPU scaling is a feature provided by your GPU manufacturer (AMD, NVIDIA, INTEL etc), so you need to make sure your GPU drivers are updated.
Install Wallpaper Engine Patch
Since its initial launch, Wallpaper Engine has launched many software updates and patches to fix issues related to wallpaper not working on the second monitor. It is quite possible that you’re running an old build and need to update the software.
You can check the latest updates and patches available from Wallpaper Engine here.
Check Playback configuration
With recent updates on Wallpaper Engine, users can now configure different playback options to make sure the wallpaper is running fine.

Change settings from Paused to Keep running for all options. This will instruct the second monitor to display wallpaper.
Disable video audio output in the options
This method will help you if your wallpaper is having some audio features as well. Wallpaper Engine is configured to run wallpaper audio when there is no audio output coming from the game you are playing.
If these settings are not configured correctly, you might face “wallpaper not coming” when the game is running issue. You may fix it easily in Wallpaper Engine configuration.

Here make sure the wallpaper playback is set to “Keep running” for all applications.
The error comes from Windows media foundation and it will only affect videos except for WEBm. So you can convert your wallpaper video file to WEBm format and it will run efficiently. You may use any free online video converter for this task.
Conclusion
These are all the methods to fix Wallpaper Engine not working on the second monitor issue. Please make sure to update the software and Windows OS to the latest version to avoid any issues. I’m sure the above methods will help you to tackle this situation. Before following the above methods, do make sure that the video wallpapers you download are compatible with your system.