Your use of parameters looks good. I cannot confirm the Path from your screenshot, but I am assuming it is as you write in your post :
I recently was playing around Virtual Environments and I did get the same error as you (Error initializing Python engine). My best guess is the way Python 310 has implemented its folder structure, UiPath fails to parse it and find the python.exe file. I am guessing here as I don’t have Python310 installed to confirm this. In a virtual environment this is the case.
If you have other version of python installed it is worth a check.