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That's a new one to me.
Here's a hint, you can choose where you want to install games and even add another library folder on the same drive if you edit one of the files.
Game performance is not related where Steam is installed.
Heavy modded on Unofficial server > maybe either of those is the issue.
Either A) Your system can not keep up with the demand of mods used in your game, or B) The mods are having a conflict, or issues to cause you to lose performance.
https://support.steampowered.com/kb_article.php?ref=7710-tdlc-0426
https://www.computerhope.com/issues/ch001266.htm
Being in a different folder won't change the performance. A 32 bit program is treated as a 32 bit program, as 64 bit program is treated as a 64 bit program, no matter where they are installed.
ARK is a very system heavy game and has issues, even with my 2080 Super.
Mods use what ever the base game allows them to so, again, they are treated as what ever bit they are supposed to be, regardless of location.
"Well 64bit is better and they made two folders for a reason."
It's not hard to imagine all sorts of fantastic things if you're not aware of the mundane reality.
OP does not realise that those directories are basically meaningless.
OP. It’s like having a “shelf” in your refrigerator for “candy” and one for “vegetables” and thinking if you put a veggie on the candy shelf you will some how screw up it’s nutritional value because it’s “installed” on the wrong shelf.
If a program is 64bit it will run exactly the same whether it’s in “Program Files” or “Program Files (x86)”