Hi,
For some reason the Cycles initialisation failed. I see you posted your diagnostic results. This shows that rendering should work.
This means you have still an older build exhibiting a display mode drop-down bug that I have already fixed in a later build, which should already be available (24th of November). I think you see problem with Cycles initialisation also because of the older build. Please update to a newer Rhino WIP build - if everything goes well on Tuesday night an even newer build should be available (unless some stop-ship bug was found).
To get modal rendering with Cycles make sure you set in Render > Current Renderer menu RhinoCycles as the active renderer. Then you can press the Render button to render the active viewport in a separate render window.
The imperfection you see here is from the OpenGL shaded rendering. I have reported the issue: RH-32123
/Nathan