Maybe I had/have an older copy. I recently unpacked some of my Atari collection but haven't had time to play with it much. I can look for my copy of VT10SQ, but unfortunately, I don't have a way to transfer it to my PC at the moment. Still, I could try it on my 800 and verify that it works. IIRC, there was a similar program called Ansiterm that was also a dumb terminal but supported the ANSI character set. That also ran on my 800.
I don't see how... It didn't run on the 800, so I swapped the 800 with the XEGS (unplugged SIO cable from the 800, plugged into the XEGS). If it didn't like my SIO2PC or something, well, it was still attached when it worked on the XEGS. I used the same DOS 2.0 boot disk image for both, too...
Maybe it was a different version you had, that worked on the 800?