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Okay, I've been working on this full-time for nearly a week and finally had a breakthrough. The Problem:
Many of my Steam games began failing to load. I.E.:
Bioshock Infinite
Just Cause 2
Deadpool
Borderlands: The Pre-Sequel
Saints Row IV
and probably more I haven't tried yet.
Most of them were giving me the error in the title.
I tried all of the following to cure the problem...
I verified that my edge firewall wasn't blocking traffic.
Verified that PC is plugged into the wall.
Disabled windows firewall & windows defender and my Malwarebytes Premium virus protection.
Turned off Steam Overlay.
Disabled Steam Cloud Sync.
Killed any programs that may produce OSD stuff, like FPS counters in Afterburner or EVGA Precision XOC.
Verified cache files.
Uninstalled and re-installed problematic games
First, tried executing steam://flushconfig, reboot, run steam from the steam folder.
Exited steam and deleted clientregistry.blob and restarted steam.
Manually installed the vcredist, dotnet, and DirectX installers from game sub-directories.
Ran msconfig and rebooted in diagnostic startup and tried game.
Moved steam to C:\Program Files (x86)\, and other folders on other drives.
Installed latest geforce drivers
Installed all latest windows updates
re-ran directx 11 install
Uninstalled game and restarted windows into safemode w/networking and tried re-installing it in safemode.
Completely uninstalled steam, along with every steam game.
Manually removing all valve/steam related registry entries.
Re-installed steam & re-installed games
Run steam with admin privileges.
Create the proper steam_appid.txt files for each game.
Creating softlinks to the Steam folder in each game's executable folder.
And much, much more.
Nothing had any effect. Then I stumbled onto a page where a user named Wildstar had surmised that the error was being thrown because of some failures in the Steam CEG copy protection system that all of the failing games happen to use. It uses some algorithm to create encrypted executables that will only run under the user's account. So I played around with deleting all of the .exe and .dll files from a game and then letting a validation run to restore the missing files in the hopes that it would produce correctly encrypted binaries. Didn't work.
Finally, I decided to do everything I could to restore my Steam setup to as default a state as possible. Once I performed the following procedure, every single one of my problematic games returned to normal operation, and in some cases, I had missing saved games suddenly reappear.
In its most recent arrangement, I had my Steam folder on my E: drive because there's not enough room on my boot SSD for the 600GB of games I own. I also had an app directory on my C: drive that I tried moving some games into to see if running from the boot drive would help. So I had an E:\Steam installation dir and a C:\Steam Library dir, both paths being registered in my Steam Library Folders list.
These are the steps for fixing the CEG issues...
With the games that were throwing errors, I recommend finding the starting binaries in each game directory and then deleting them. Delete the main game .exe and any Launcher type .exe's as well, and then click Install. It will download the correctly customized/encrypted main executables you need to play the game, once it sees the old ones are missing.
Every game that was giving me problems came back from the dead after following these steps.
If you should happen to click install on a game that doesn't already have its files positioned in the place you specify, it will begin downloading them. After that point, it will do you no good to copy the game directory into your intended destination. Steam will not recognize the appearance of the new files. It will keep downloading into a temp folder until it's done and then copy over the files you just moved into place.
To correct this if it happens, you must pause the download and uninstall the game, copy the complete game directory into the desired SteamApps/Common folder, and then click Install again. If you see the "Discovering Existing Files" message, rather than the downloading progress bar, you have succeeded.
If this ends up working for anyone, let us know.