Update: It now works, but crashes after I collect the first item.
Hey, dunno if this'll help, but I had the same issue and I seem to have fixed it in DOSBox. YMMV, and I'm using Windows 8.1, not 10, but I can't imagine the solution would be any different on 10. I found the CWSDPMI stuff in Setzer's thread from a couple years back, so my apologies if you've already tried it. Thanks to Elebreed for bringing the memsize thing to my attention.
- Open DOSBox's configuration file in a text editor. There's a batch file that comes with DOSBox that automatically opens the config file in in Notepad (DOSBox 0.74 Options.bat), but if that doesn't work, you can find the config file at C:\Users\[account name]\AppData\Local\DOSBox\dosbox-0.74.conf. Change memsize=16 to memsize=64. 1.90 might not require this step, although I think 1.92b183 won't work without bumping the memory up.
- Download CWSDPMI. You can find it here, although if that doesn't work I reuploaded it here.
- Unzip CWSDPMI and put it somewhere you can find it in DOSBox (I just put it in the same folder as ZC 1.90).
- Run DOSBox, cd to wherever CWSDPMI is. Run cwsdpmi -x. cd to wherever Zelda Classic is, run zelda, and hope it works.
I've tested 1.00, 1.84, and 1.90, and they don't seem to crash on Hold Up Items anymore. I wanted to test 1.92 for myself, but apparently the version on zeldaclassic.com that's labeled as being for DOS isn't actually for DOS (???). Elebreed attests that he's gotten 1.92 DOS working using this method, however, so hopefully it'll work for you too?