There is a lot of subtext that I am getting from your posts, OP. I agree with Scribbler’s post above on how to find him a suitable home, for the record. That is a fantastic post loaded with excellent advice.
It IS possible to problem solve for this horse’s situation. But the solutions that I suspect will keep coming up are not going to be good fits for your current situation. No horse has the same set of needs. This is why certain horses thrive in situations that others do so poorly in. One of the hardest things we can do as horse people is to look, without ego or excuse, at what EXACTLY the needs are of the horse we are dealing with IN THIS MOMENT. “Well if we make it past this we would be ok” isn’t looking at the horse’s needs in this current moment.
To me, this sounds like a horse that would flourish with certain opportunities. Unfortunately as you are finding out, your current situation doesn’t allow for many of those opportunities. It’s the timeless “square peg/round hole” conflict.
Additionally: no, that is not how I approach new horses. It comes across very “strongly” (I have an averse reaction to passing acquaintences coming in strongly for a full body hug. Going in reaching out for a horse who is mostly unfamiliar with a person is much the same).