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Not all games can be moved, like Microsoft Flight Sim. They have launchers that are used to download and install their games.
What game do you need to move?
DId you ever find a solution? Im having the same issue, cant highlight multiple games like i used to be able to and uninstall/move is greyed out on every single game i highlight.
The comment on here doesnt explain the issue for me none of my games use an external installer, and i doubt ALL of my games are incompatible.
Sorry this won't be much help but mine just started working again one day. I was able to tick on the box of the list of games in the storage menu and the option for move wasn't greyed out anymore. I double checked that my external hard drive showed up on the list of drives and it was there. Maybe there's a way to remove and then add your external drive again on steam?