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https://support.steampowered.com/kb_article.php?ref=7710-TDLC-0426&l=
You could test this real quick with a USB stick and a tiny game, you can move games without reinstalling them also.
Keep in mind that steam might get real confused where the games are if you unplug it at any time while steam is running, it might even be confused if you start steam without it plugged in.
Worth testing stuff like this.
I think this will hide the games in the steam application for you and everyone else using that install.
The games might still show up in the list of installed applications in windows but that can thing can be edited manually.
Keep in mind that there are lots of other ways for people to see what games has run previously, for example saved games and other stuff.
Also anyone could look at the files in Steam and find out what profiles has logged in to it and visit their profile pages.
https://www.howtogeek.com/howto/5291/how-to-create-a-virtual-hard-drive-in-windows-7/
It's kind of like mounting an iso file but it's an hard drive that is actually a file on your real drive.
Again, don't unmount it with steam running.
Dual booting two windows installations on the same PC would work best maybe, might be harder to hide and explain though.
Once your game has finished downloading, just move it to a folder and revoke the permission for the other users (properties, security, advanced, delete all the groups, add your account by typing in your microsoft email, give it every permission. Add the other accounts the same way, revoke their permissions).
It's a tricky way but it seems to work like a charm. You shouldn't forget about downloading the games to a "ghost folder" and then move them to your personal steam library folder otherwise Steam will display an error saying that it's missing the required permissions, also I guess that you should move them back to the ghost folder if you want to update the games. It goes without saying that your account must have admin privileges.
I bet Steam can't think of a common situation where user might need to install games in different folders on the same drive and removing it solved lots of possible problems.
What did you do?
What result did you expect?
What happened instead?
Also that drive might still show up in the install locations while others play try to install games, haven't done this so check this.
I'm out of ideas. It's just a pain in the ass to get such a simple task done.
The simple way to do this is to get your own personal computer.