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First thing I suggest doing, is completely uninstall Avast in it's entirety. It is essentially bloatware that will bog down your pc with NO extra protection over base windows defender. Windows defender is ALL you need, it is really good.
Start by confirming whether the threat is even legitimate. It could be a false positive, and Avast has an extensive history with false positives particularly with DLL's used by game platforms or older software such as with lotro. Upload the libcef.dll to VirusTotal[www.virustotal.com] to check of anything else flags the file.
Add a temporary folder exception to Avast's exceptions list or disable Avast if for some mental reason you haven't completely uninstalled it by now.
You can easily fix permissions errors by 1) closing steam completely & reopening steam as administrator or manually fix the file permissions.
By now, if nothing above works, just uninstall Avast already. If you really need a second opinion malware scanner, use Malwarebytes[www.malwarebytes.com] free version and only open it & scan when you need to. Don't get the pro version.
libcef.dll is also part of the Chromium Embedded Framework, and loads of applications use it for web rendering. The likelihood of it being malicious if downloaded from Steam is basically zero.
Hell, at this point, I'd go as far as saying that any "anti-virus" program you install is just bloatware. Especially so for free ones.