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When you do it this way, the installer will take all Steam files and replace them with updated client files - call it a "Clean Install" for lack of better terminology.
But this fixed my Screenshot Manager issue.
Also, can you check Task Manger and see if your RAM usage for Steam Webhelpers and Client are not over 1.3GB because this too could be a culprit with a fix I also have which is most likely caused by a bug/glitch (Steam Client update related or not) or having too many games in your Steam library, screenshots, etc...
Appreciate your reply with suggestions, I just gave the Steam setup over the current steam version a go, unfortunately didn't change the result when attempting to upload anything to artworks. Also in total steam and all of it's processes are only taking up a total of ~900MB of RAM.
This is normal Steam Client operating RAM usage, anything at or below 900MB is normal.
I did mention in my original post that I have tried on both my laptop (a MacBook), my computer (Win 10) and on both Opera GX and Chrome browsers. I just re-attempted on both browsers and confirmed the error still persists. I reset all cache/cookies/history on both browsers and it still errors.
You have to excuse me I am partially dyslexic and when there is a bunch of words jumbling into a large paragraph, I see different words then they appear.
I just attempted to use .jpg, 1 image worked but other images go back to that same error message, seems to be very inconsistent...