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They would only need the client if they wanted to as example, run the game itself. Not a dedicated server or other tool/app.
16GBs was a minimum recommended for gaming a long time ago. If you're utilizing more RAM or nearly maxing it out, you need to install the proper amount if you don't want to utilize virtual memory.
You really should install more RAM than you need, by absolute default.
Basically the gist of what I mentioned earlier.
If you want to play your games, you need to use the full client unless the game doesn't need it by a direct executable operation. It's extremely easy to launch any game as-is including with shortcuts, you really don't need SteamCMD for something it's not intended for.
Again, if you're having issues with the amount of RAM you have or need, then you seriously should install more. Always install more than you will need on your heaviest load. RAM is incredibly cheap if you don't need the highest end stuff, which 12GB seems to be of a build that likely has age, and typically is super cheap.