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I am having the same issue. Was playing Helldivers yesterday. Came back today and getting
Failed to load cached hosts file (File 'update_hosts_cached.vdf' not found), using defaults
[2024-02-27 20:25:24] Download skipped: /client/steam_client_win32 version 1708985249, installed version 1708985249, existing pending version 0
[2024-02-27 20:25:24] Nothing to do
Then shutting down. This is the only bad things I saw in error log. Now I've been researching this all night.
https://steamcommunity.com/discussions/forum/11/4337600284772629397/