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The issue is pretty rare and I do not have any concrete ideas that you have not tried already, so I'd just start by letting you run the scan tool and posting the log file it produces as described here:
https://steamcommunity.com/app/431960/discussions/1/3307213006836797842/
Maybe there is something odd about your setup that I can see.
Here's the paste ^^': https://pastebin.com/qZi4fVDN
Did you really fully delete the Steam directory (except for the SteamApps directory of which you can keep a backup that you can move back in after re-installing Steam)? In cases like yours, a re-installation of Steam pretty much always solves it, so I would recommend you try to first uninstall Wallpaper Engine and then uninstall Steam and re-install it afterwards.
Follow the "Manually Removing Steam" section at the bottom of this Steam Support article to uninstall Steam while keeping all games:
https://support.steampowered.com/kb_article.php?ref=9609-OBMP-2526
Thank you for the help, turns out it was Steam being mean! :'D