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Right click the game name in your Library list
Choose Properties
Click the LOCAL FILES tab
Choose MOVE INSTALL FOLDER
Point it to the new install location and let the client move the files.
I know this works well.
It might be possible to cut/paste the entire folder, then do
Steam > settings > downloads > LIBRARY FOLDERS > ADD LIBRARY FOLDER > select the new location where you pasted the entire steam folder.
I am not sure that is 100% the way to go, though. There may be another appmanifest folder somewhere or something like that.
Any thoughts?
Did you try to delete the old one with Steam closed and not running at all, from any drive or location ?
EDIT............
Apparently, that is not the case, if you are getting that error.
You should have moved it instead. But what's done is done now.
Whatever you do, do NOT get rid of your steamapps folder. That is where you would have to redownload all your games if you did that.
There must be a reason why you are getting that error. Boot the PC into safe mode and delete the OLD folder. Keep the new one, and again, whatever you do, make sure not to get rid of the steamapps folder in the new location where you pasted it.