If I buy a route with scenarios from a third party seller(Lets say RSSLO) am I allowed to use it if it is also sold on Steam in the contest if I take the picture from a route which has that scenario in the Steam version?
I'd say of course - as long as the picture only contains rolling stock that's available on Steam. There's no scenario type restriction, as you can setup a scenery in your personal Freeroam too.
My understanding is that as long as everything in shot is currently available from the Steam store, then it's eligible in the screenshot competition. On a practical level how can anyone tell the difference between an RSSLO directly sold route and the same route bought from Steam?
Even if it's a slightly different version of the route, you may be fine. For instance, Western Mainlines with the South Devon and Cornish extensions, showing a shot of Penzence with a Class 158 in there; DTG can still market the Cornish Main Line and the Class 158 in the bar below the screenshot. If, however, you are parked at Swindon, which is on the Western Mainlines proper with the Voyyager Advanced in a Virgin livery...DTG would not be able to sell that since WML is not on Steam, nor is the Voyager Advanced, nor is anything Virgin nowadays.
I say it depends if the one off of steam is at least mostly identical to the one on steam. For example, you probably can't used SS's AC4400CW from their store, as it has the GE Builders plate on it, which is removed on the steam version of it.
The scenario you use can be from anywhere. You can also create your own scenario or just set up a scene just for the required screenshot. I have frequently done just that on some of my winning contributions. As long as everything visible in your shot can be purchased on Steam (Route / Loco / Assets etc.) you are absolutely fine. As an example I have the whole of the MML + add ons purchased directly from Just Trains. If I take a screenshot at Derby Station that would be fine as that part of the route can also be bought on Steam as a stand alone route. However if I was to take a screenshot at Matlock Station that would be disallowed as the Derwent Valley extension is not yet available on Steam. Also be careful if you use any enhancements such as RWE or the AP track / weather packs as they will disqualify your entry if visible. Hope that Helps.
Nonsense, Matlock is clearly in the route. The route markers say so! Grab that plain patch of grass facing the rest of the route all you want... ...what? (Yes, I know the Derwent isn't on Steam.)