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Hi Brian, It is normal to get the Kernel driver error so your output of hostapd is fine.
As you are getting the wifi symbol rather than the arrows, this means wpa_supplicant is still running, which will override the hotspot even if it is active.
There is two places that can be started, check the /etc/dhcpcd.conf has the line; nohook wpa_supplicant

The other place is /etc/network/interfaces
This should only have the top 5 lines in it for stretch;
# interfaces(5) file used by ifup(8) and ifdown(8)
# Please note that this file is written to be used with dhcpcd
# For static IP, consult /etc/dhcpcd.conf and 'man dhcpcd.conf'
# Include files from /etc/network/interfaces.d:
source-directory /etc/network/interfaces.d

if it also has a line containing wpa_supplicant then the interfaces file needs backing up and anything other than the top 5 lines as above removed.

The wifi setup for Jessie did seem a bit easier, Stretch was a bit fiddler to work out but it does work.

to check if wpa_supplicant is running enter
wpa_cli -i wlan0 status
if it comes up with anything other than "Failed to connect....." then it is still running and the hotspot will not work.

let me know if you have further issues and I will have a closer look.