All the facts point to there being a problem with the mag (compass) sensor. The mag health must be green for Atti/Stab to go green and then you can arm it. That leaves the most likely thing being that the mag health goes red once the motors are running. That is a very common problem. You see, there is no electromagnetic field (OK, very very small field) when the motors are stopped, but once the high current starts to flow, that is when you get an electromagnet effect and the mag sensor goes crazy.
I don't see anything wrong in your settings file. You could try a new mag calibration. That might help, but I would not bet on it.
At this point, a good guess is that you have your FC mounted right on top of your PDB and as soon as the motors run, a bad PDB design causes huge magnetic field right through the FC. With that I would expect some Attitude mode trim issues when using INS13 though.
You don't have telemetry. If you have a 3 meter usb cable and a laptop, you can make a 30 second Attitude Mode test flight with cable attached. Make a log of the flight. Watch for red mag while flying or while playing back the flight log. Are you confident enough that you can do this with a 3m cable attached? Another option (also using USB and laptop, and getting a flight log) would be to tie it down, like to the planks in a wooden porch; arm it and give it flight power. Again, look for red mag.
Consider getting an OpLink for about USD $18 on eBay. The telemetry comes in handy for things like this. I am guessing that 433MHz may be a problem in your country though... Also, I guess you would need an "OpLink Air" if you are using a Revo mini. Probably the best way for Europe is to replace the RFM22B boards on Revo / OpLinkAir and on Oplink with a version that works with a frequency you can use locally. You would then want to upgrade from 16.09 to next which has support for these frequencies.
https://www.ebay.com/itm/Openpilot-OPLink-Mini-Ground-Station-433MHz-Rdaio-LibrePilot-Compatible-FPV/172353558651It's also possible to simply buy serial telemetry links on your frequency and connect them to Flexiport/Mainport in the air and USB on the ground.
One other thing you can do is verify that mag sensor is working correctly. Look at some parts of instructions in Aux Mag GPS wiki and everywhere use MagSensor instead of AuxMagSensor.
https://librepilot.atlassian.net/wiki/spaces/LPDOC/pages/18382863/Aux+Mag+Setup+and+CalibrationIn the section titled "Viewing AuxMagSensor to check if your mag is working", start at line "Default for these numbers is 'report to GCS every 10 seconds' ". You really could permanently leave it set to 1000ms if you want, no problem.
Then in the section titled "Set and verify AuxMagSettings.BoardRotation" start at the line "Look up (Google) 'magnetic inclination' for your location." to verify that your mag sensor data seems sane. End at "Same for Bottom side pointing north"
Watching the MagSensor x,y,z you should be able to zero in on exactly where the magnetic field north direction is. Is it where you expect and do the numbers act like they should? For example, when pointing the nose north and 60 degrees (magnetic inclination/dip) down, "x" should be a large positive number and with small motions, you should be able to get "y" and "z" to be close to zero.
If sensor numbers check out, and mag health goes red with motor power, then you must fix the red mag health that happens with motors running. All thick wire cables including battery, cables to PDB, cables to ESC, cables to motor must be twisted into ropes and routed as far away from the mag sensor (Revo FC in this case) as possible.
We need a picture of your power distribution board (some kinds are horrible for mag sensors) and another of the whole quad with battery installed and plugged in for flight. These will help determine if you have an electromagnetic wiring problem.
One more question and that is whether you have any magnets (besides in the motors) on the quad? The standard "1-8S LiPo alarm" actually has magnets in it and must be mounted far away (say at least 25cm) from any mag sensor.