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Copy a single large 1+GB file between locations then transfer 100-1,000+ small files that equal the same size as the large file. You'll see the single file transfers faster.
1. allocate space on the drive in steamapps\downloading\gameid
2. populate files (download)
3. unpack files
4. move files from steamapps\downloading\gameid to steamapps\common\gamename
if its a larger game or has compressed files it will take longer on a spinning hdd or external storage
it needs to send a request for the next file after each is complete
adds lag between files
small spikes average lower than larger waves
https://speedof.me/
steam -> settings -> downlaods -> region
I'm not sure if this is the same issue you're having, but for me, I can have Steam server download speeds that peak out around 60-70 MB's, then drop to 4-5 MB's or less (even in the kb range!) during the same download, but there's no disk or ram load at that time, so it's not unpacking or installing files at that time, or even reading them from memory, it's simply a data-stream slowdown on Steam's part. I've confirmed this by doing download speed/load tests at the same time as the Steam downloads, and can still hit 700-800 MB's a second download speeds WHILE the Steam download is still lagging at sub 10 MB's a second.
The only reason for that is either deliberate throttling of speeds by Steam in order to control server loads, or they are having intermittent server problems in their network. Not to mention the "preallocating" crap, a few times it literally takes an hour or more before it finally stops that and begins the actual download, at other times it takes seconds, even though the game is much larger than the ones that took far longer; they were installed on the same SSD, which has TB's of free space.
As for transfer speed of multiple smaller files vs large files, on modern networks the overhead of the additional packet headers is virtually insignificant, especially files that small, so that would be highly unlikely to have an impact, especially on gigabit-level networks, besides, as I read it your having the issue with individual small files, not many at once, so the network overhead wouldn't be the issue in any event . . .
You can't "fix" this. The game may be small but it has many files, not whole files. This means it has to send a request everytime to download 1 file. This can make it take a while.