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1) The steam version of the game.
2) The game client downloaded and installed through steam.
But honestly, the Bethesda client might be better than the steam client.
Not only was the steam client known for problems in the past, you also connect through an additional launcher that drains additional resources and is an additional connection link that could introduce connection problems.
I read about these when making my research with buying the Steam version, there were indeed lots of problems related to unstable Steam authentication servers. Also a case with the Steam OpenID signin broken for quite a while. These days it seems much has improved, for example I have not experienced any game kicks when Steam was down. It was one of my biggest concerns in the beginning, as I made similar unpleasant experiences with Spiral Knights all the way back in 2011 - 2012. Thankfully, even if these problems still exist, owning the game with a website account leaves one free to login through both the launcher and Steam version of the game. Much must have happened in the past years, as one comment on Reddit says DLC content wouldn't be shared. But it's not true, since redeeming website codes and having linked your Steam account all works just fine to access your purchased content.
This is correct. You will still have to open an ESO account and this will link with Steam. All your data will be kept on the ESO account and all the Steam version does is deal with security and the launcher.
However you still have to buy the base game from Steam if you want to link accounts.
What does my internet or PC have to do with anything when steam has server issues? WTF?
Or are you telling me steam never has server issues? You must be either new or trolling then.