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The preallocation process should be relatively quick, unless the game is huge, (above 50 GB).
When Steam preallocates, it's just finding and reserve disk space.
If this process is slow or never ends, there are many explanations.
1) Your anti-virus software may be causing some issues.
2) Your HDD may be failing.
3) Your HDD is just sluggish, and is packed to the brim.
4) Your Steam installation may be corrupt.
5) You may just need to clear your download cache.
Some downloads work in this way; where unpacking is done.
Payday 2 and Ark etc, download in this manner - where unpacking / decompression takes place.
Thus, you'll see disk usage being active, while bandwith is not consumed
If this is not the case, there may be some other bottlenecks such as CPU / Disk IO.
Look at your CPU and disk IO.
You are likely 100% capped on either one or both.
It makes no sense to keep sending you data when your system can't keep up with it.
It just makes the overall process slower because the system can't keep up with the data coming in.