We extend our $\imath$Hall algebra construction from acyclic to arbitrary $\imath$quivers, where the $\imath$quiver algebras are infinite-dimensional 1-Gorenstein in general. Then we establish an injective homomorphism from the universal $\imath$quantum group of Kac-Moody type arising from quantum symmetric pairs to the $\imath$Hall algebra associated to a virtually acyclic $\imath$quiver.