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https://i.imgur.com/yach9hU.png
Update the setting accordingly.
Additionally, make sure both computers use the same IP address subnet and can see each other.
So, if one PC is connected over Ethernet and the other over Wifi, make sure that those networks are bridged. Additionally, some Wifi networks can limit communication between network devices, which for guest networks are great, but in your case a serious problem.
That is a setting of your Wifi access point/router
@Cathulhu, this settings is set to "Anyone" for both of our accounts. Both our PCs are connected to the same router with LAN cables.
Local transferas have to be enabled on both systems. This is a system specific setting not an account setting
also note that you can transfer TO a asteamdeck, but you cannot transfer FROM a steamdeck
Added some context but there are some limitations on what can be used as the source for local transfers
https://help.steampowered.com/en/faqs/view/46BD-6BA8-B012-CE43
Also it could be a firewall issue on your other computer blocking port 24070. So that computer can pull data, but it cannot send data.