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I dont play or download the free weekend things.
The "Games" total and the badge total are accurate, 100%.
Your Library list includes games that do not count. Free 2 Play, Free Weekend games, and sometimes Duplicate entries for certain games, like in the past GTA and CIV games listed two entries, one for PC and one for MAC. But they only counted as 1 game for the total owned. This has since been corrected (about 1 or 2 weeks ago) and they only list one entry as they should.
It doesn't matter, they are still in your Library list and count until they go away after the weeked.
Edit:
Currently I have 977 games owned, but show 983 on my Library list because of Free 2 Play games and the Free Weekend games.
Even your Licenses and Subscriptions list at https://store.steampowered.com/account/ shows some Free games, and even Free Weeend games. "Complimentary" cannot be trusted as not counted because some retail redeemed games show up as that, and it also lists DLC.
Basically:
Free 2 Play = Doesn't Count.
Edit:
Apparently Defiance, just moved to F2P, counts, I tried installing it and it increased my count to 978... but I think that's a bug since it just moved to F2P.
ALL GAMES on your Profile can include some DLCs and stuff. Like my DLCs for Fallout: New Vegas list as separate games/items when u view All Games in my Profile.
Games Library can of course include any FTP games (and free weekend games), which if are limited in this way will disappear after the free weekend.
If u installed a FTP game and want it removed from Library view; Steam changed how this works now. U have to go to Account Details and remove the FTP game from your list, if u no longer want to see it. For example u tried it, didn't like it, do not wish to see it in Library again.
http://steamcommunity.com/profiles/76561198160705722/
Excellent explanation, it is still valid as of through end of 2018. Some DLCs are still treated as games by Steam in your profile's all games list which causes the confusion. Thanks!