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1. Goto Steam > Settings > Downloads and click the "Steam Library Folders" button.
When that window appears click on the plus icon at the top where your drives are listed and use the window the plus causes to appear to navigate to and select the folder your game files are in.
Note: The UI update released June 13, 2023 changed the settings menu. To get there in the new UI go to Steam > Settings > Storage
2. Restart the Steam Client and log in again. We must be online in Steam for the next step.
3. Now your games should appear in your Library (View > Small Mode is a minimized list instead of the big, ugly, full screen version with the tiles and play buttons) but they'll be grayed out. When you double-click on the games to launch them from Small Mode a Validation Process will run. Let that process run until it completes. When it completes you'll be able to run the games.
I don't know if doing this is any different in Large Mode. I don't use large mode.
I was having the same problem.
The Settings dialog was changed recently.
What you look for is here now:
"Steam" menu -> Settings -> Storage
*I'm running the old UI. I don't know my way around the new settings maze.
This fixed it for me. I guess a recent steam update creates a new folder in your main steam drive called "SteamLibrary". I have all my steam games installed on that same drive, but they're in a different folder with a specific name I gave it. Renaming that folder where my games are installed to "SteamLibrary" and restarting steam solved the issue it seems.
> and < and ^ are technically called carets.