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C:\program files (x86)\steam\steamapps\
Turning off antivirus apps often does not fully turn them off, so you need to specifically tell them to ignore the Steam folder. Additionally, if it has already blocked some files, you need to manually delete them.
1. Uninstall Wallpaper Engine via Steam.
2. Manually delete the remains of the wallpaper_engine directory by deleting this folder on your hard drive:
C:\program files (x86)\steam\steamapps\common\wallpaper_engine
Now reinstall the app and try again.
But I have resolve mine. I have yet to restart but currently I got it working:
I have deleted the wallpaper_engine folder in steamapps.
Allow steamapps in Windows Defender
Set Launcher to run as admin.
Hope this help