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Before, each game downloaded those files on their own so you had a ton of duplicate versions in each game folder.
Steam now collects all those files in that "Steamworks Common Redistributables" archive which automatically downloads with the client.
And each game that needs a certain file takes it from that archive, if it needs one that is not included it gets downloaded and added.
Saves quiet a bit of download and installation size, especially if you have a lot of games.
So its a good thing, dont delete that archive, it just will download again on its own.
downloading update.
https://steamcommunity.com/discussions/forum/0/1782766638536555591/
and here
https://partner.steamgames.com/doc/features/common_redist
you would think the thing would have a desription or something on the thing somewhere.
/delete thread