Navigate to the folder and run Setup.exe in Windows XP SP3 compatibility mode.
Photoshop 7.0 is a native 32-bit application . It cannot access more than 4GB of RAM. It also does not recognize modern GPU acceleration (CUDA/OpenGL). So, while it runs, your $1,000 graphics card is useless to it.
If you need a lightweight or free photo editor that is safe and fully compatible with Windows 10/11, consider these modern options: