Then regarding 32 bits or 64 bits version, I think it should be 64bits. Try to install it please. I think to remember that on old servers I got the 2 libraries 32 and 64 bits installed, but with newer Adobe Campaign version it was a 64 bits runtime and the JDK 64 bits is enough. However I notice your AC version is 32 bits so I wonder why.
java version "1.8.0_201"
Java(TM) SE Runtime Environment (build 1.8.0_201-b09)
Java HotSpot(TM) 64-Bit Server VM (build 25.201-b09, mixed mode)
Anyway, please may you check in your PATH environment variable, you should have these paths in it:
On Windows it seems the nlserver is purely using registry key when trying to locate JVM on the disk. It is not using JAVA_HOME, PATH or any other method you may be used from other Java process launchers.
Specifially nlserver looks in registry location HKLM\Software\JavaSoft in order to find a JVM. Setting this registry key is not part of the Java standard; it was/is a proprietary thingy done by Oracle's Java installer. The consequence is that if you use any other Java distribution than Oracle's (or haven't installed the JDK but just unpacked a ZIP bundle) then you need to double-check if your specific Java distribution sets this key or not. If you are using AdoptOpenJDK, Zulu, Amazon Corretto or any other Java distribution which is not Oracle's then you need to verify the presence of this registry key.
For example with AdoptOpenJDK's MSI Installer it is an opt-in option: