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That said, I also just remembered that you can check in your Steam Library if the game is already running (I think it literally says "RUNNING" instead of "Play Game" or whatever), rather than bothering with Task Manager if that happens again.
Normally, Hollow Knight is DRM-free on Steam, so it doesn't require Steam to run. If you launched it from the .exe file or a shortcut, it ran without Steam.
However, recently probably Steam made some changes, and now trying to launch it directly from .exe results in that error.
Now you have two options:
✅ Run Hollow Knight from the Steam app instead of the game .exe file (recommended)
✅ Put a steam_appid.txt file with the number 367520 inside the game folder (where the hollow_knight.exe file is) if you want to run it DRM-free like before