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Better yet: because this file is hosted on your system drive and within the Windows system directory no regular processes can change this. It wouldn't even be caught by any protection services because the request in its entirety would fail in the first place.
So assuming this is a legit log entry (which I kind of doubt) I can't help wonder: why on earth are you running the Steam client process elevated in the first place? In other words: with admin privileges?
Because this is not the default behavior; everyone who has installed a game will know this: at some point you can get a notification that you need to elevate things ('become administrator'). If the Steam client process already had these privileges then they would have been inherited by the installation process. They're not.
Ergo... your post makes little sense, at least not to me.
https://www.bleepingcomputer.com/forums/t/726952/threat-detected-settingsmodifierwin32hostsfilehijack/
I also haven't much of a clue either and based on what i could make about anti-malware and the rest of it? i suspected it was also a false positive as well, considering Valve doesn't and will never put harmful worms, viruses, rootkits and other of those nasties in their programmes including the steam drm service. That seemed obvious before the question was asked by the OP.
It’s ok not to know something. I know a lot about computers, but I don't know how my car works, where the oil goes or what a carburetor is. You cant know everything.
It’s not ok to not know something but then be all high and mighty in your ignorance like the OP. Especially saying utter nonsense like "making a static A record" when talking about a local hosts file is like laughable beyond recognition
DNS: Domain Name System. Basically the thing that lets you type in steampowered.com and then resolves it into the IP adress. Think of it as the connection between "Aunt Maggie" in your phone book and the actual number that is dialed.
The hosts file is somewhat klike a list of these custom phone book entries. For example if you constantly find yourself mispelling googel.com you can use an alias to point to right address.
The dangerous part is in malware placing a redirect in this file so instead of steampowered.com you will land at myscamsite.org.
Chrome Embedded Framework - actually ChromIUM EF, the codebase behind the client which handles all the browser-based stuff. Most famously used by the Chrome web browser.
The whole last paragraph of the OP is pretty much "I just learned a few words that I now throw around" and is entirely pointless.
Even better:
if you check your hosts, you will see there are no changes (you didn't make).
You probably don't have a Carburetor unless you have a classic car. The oil goes where the oil goes. It works on the principle of "suck" "squeeze" "bang" "blow" or 4-stroke.
The OP is looking at the event viewer. Timeouts and failure to start / stop aren't really a big deal. It happens, and unless it keeps happening who cares. Virus scanners do false positive. It's a thing.
I generally like to actually find the targeted file itself. Check that it's in the correct location for that file and that Details tab is populated with legit information.
Not sure where OP found "chrome embedded framework"
Microsoft anti-malware sucks ass
Except it doesn't.
If you bother to install the updates it is one of the best free products out there - because it doesn't behave like malware/PUP itself like certain anti-virus programs who think its a good idea to silently install a browser that phones home or bomard you with nag screens telling you how insecure your machine is because it "leaks" its IP and shows you a city on the other end of the country as proof ...
... seriously, Windows Defender Suite is just fine.