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It is what it is for now, hope that gets fixed.
SteamPipe does this during patching and is woefully I/O and CPU bound:
https://i.imgur.com/6h7Gemd.png
its had nothing to do with speed you just need a certain amount of free space to be able to install
Still not sure why Valve didn't improve SteamPipe for modern game engines, it is so obsolete that even trash stores like EGS got it beat on this merit.
It really hurts their other tech like LAN Transfers which makes them basically worthless.
i dont know how much you need but i had 90 gigs and i did free up about 250gigs and it installed right away