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Scan for malware. https://www.malwarebytes.com/
Deauthorize all devices https://store.steampowered.com/twofactor/manage
Change his password on a secure device.
Generate new back up codes. https://store.steampowered.com/twofactor/manage
Revoke the api key https://steamcommunity.com/dev/apikey
You can also edit your picture, name and profile description that the hijackers changed. Don't enter your credentials into 3rd party sites or use devices that may have harmful material on them.
Scan your system for malware.
Nvm: follow the steps above in the previous post.
In the future do not do Steam logins anywhere but on the official main page of Steam. Not even on pages, that look like Steam profiles or trades.
What exactly is it not helping with? As I said, the only thing this hijacking is really going for is to manipulate your trades. The steps James told you are meant to prevent this. And the only way to find out if you are still affected is to send a test trade (you don't actually need to finish the trade, just going until the part where you would have to confirm via mobile will be enough, afterwards just cancel it) to somebody that contains a valuable item of yours (the bot does ignore low value trades not to give its presence away for a 3 cent background or some gems). If it is getting canceled and substituted by one to a low level account with the same name and avatar, you're still hijacked. Otherwise you are clean.
Everything else, the false avatar and profile text, are nothing but means to scare you into trading your items. You can just change them back.
What's not helping exactly?
If you followed all the steps correctly you should regain control over your account.
Just remove the text next to your profile name by clicking on the "edit button" on your profile & deleting everything within the "summary" box.
Your account is not banned.
Remove your "friend" from your list, block him and report him for attempted scam.
You.
Are.
Not.
VAC.
Banned.
Someone has gained access to your account (most likely because of entering your login information on a phishing site), and they simply changed your name & profile picture.
The real issue you should be worrying about is securing your account. Do all of what the first post on this thread is telling you to do.