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1 - The very first thing to do is a PC restart = that usually fixes connection problems.
2 - Verify the game files with Steam :
> How to Verify integrity of game cache:
Restart PC first ...
- Right click on Space Engineers in your Steam Library.
- Go to properties.
- Go to LOCAL FILES tab.
- Click Verify integrity of game cache
- When done try the game.
mmm maybe something with Steam settings!? Verify Steam Pref/settings to see if there is a option in there to stay online.
I would reinstall Steam without uninstalling it so go to Steam website and download the Steam installer on top, save as, when download complete > double click on it and let it reinstatll Steam.
When done > try it on default settings first.
= This way you don't lose any game cause it will install over and keep all games in.
+
If you already done that ^ >> It is probably a "network issus" or "bad Windows update" installation and this case I would test with another home router before doing a Factory restore of the Windows cause you will lose all data doing so.