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If closing and opening Steam doesn't work then try verifying file integrity.
Uninstall the game and its launcher, open registry and hold "Ctrl+F" and type in "Paradox" and hit enter, your PC will find all lingering registry files related to the program and all you need to do is just delete them.
After that, restart your PC, install the game and it should work fine, this issue is mainly caused by a fault in the registry file not updating so its using data that is no longer correct but somehow got locked out of changing those data bits which honestly can be caused by to many issues to list here (they start with windows update and end with outdated file somewhere in the ether of your PC to say the least)
Paradox's launcher is indeed properly reading the files however its given an error as a result of not having access to the data in of itself basically, its a registry problem and realistically Paradox is not the only one that has this issue.
If you dont want to toy around in your registry which I don't blame you, then simply uninstall the game, remove its files and wait 24 hours before reinstalling, your PC will automatically run maintance and do the task by self-purging the error files, the reason it wont do it while paradox's launcher is installed is because by technically, the files are in use despite not working.