I have just tried this and got the same issue with Squeezelite not starting. I resolved it by changing the soundcard in Audioplayer – Edit Advanced Options. I changed from default to sysdefault. Not sure what that does different but I was able to start Squeezelite afterwards.
This is for sound out of the 3.5mm headphone jack. The Rpi touchscreen seems to be working ok as well.
Thanks to Raymond for the touchscreen suggestion.
