Remaining escape key works, but recently I realized that it is very limited - it lacks supporting modifier keys out of the box (seems like the single support all modifiers option option is missing).
Karabinier-elements app seems to make it right, so let's take a closer look:
Karabinier-elements mappings:
a. from non_us_backslash to escape - this makes esc remap alone works and also works with all modifiers (shift+esc, ctrl + esc etc.)
BetterTouchTool requires individual mappings for all the combinations:
a. from § key to escape
b. from § + shift key to escape + shift
... and many more
if you use the predefined action "ESC (escape key, respects pressed modifiers)" this should work. However BTT is not a key remapping tool, Karabiner works completely different than BTT :-), so this is unfortunately not really comparable.