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To be honest though I think the best move is just copying over your /home/deck folder since the rest is immutable anyway.
Or if your games all support cloud saves then you can just reinstall them on the new Steam Deck OLED; if you've enabled Steam Local Network Game Transfers it will copy the game files from your other computers that are running Steam and are online on the same network.
https://help.steampowered.com/en/faqs/view/46BD-6BA8-B012-CE43
They are different drivers; the Steam Deck OLED is shipping with SteamOS 3.5.6; and the recovery image appears to now be for SteamOS 3.5.6 so we should likely see that get pushed out with all the drivers for both Steam Deck LCD and Steam Deck OLED.
Lawrence Yang confirmed that you should be able to update your current installation and move swap it into the Steam Deck OLED and it should work.
They're different things. The games cloned by local transfer are always kept in consistent places Steam knows about, in /home/deck/.steam/steam/steamapps/common/ (and other directories under /run/media for non-built-in-SSD storage); but game state for Proton games is stored in WINE prefixes (fake Windows filesystems) under /home/deck/.steam/steam/steamapps/compatdata/,. This could in theory be synced, but game state for Linux native games might be stored more or less anywhere under /home/deck, but usually in dotdirs directly under the homedir or under .local/share and .config: only cloud saves would tell Steam anything about where any of *that* was.
For the purposes of this discussion, more or less all mods are considered "game state", like savegames, not the core game itself. So good luck syncing them :/
If you want mods to sync between devices, you'd be better off using something like Syncthing[syncthing.net].