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if its usb, it could be the wire, or hub/power related
if using a hub, try with it directly connected to the pc
if no hub, try a different keyboard/mouse
Wasn't Windows itself, I'm using a mouse with some diagnostic capacity.
I've tried switching the USB ports (my mainboard has three different USB controller circuits on it). Didn't do anything.
First happened in Company of Heroes 2 - the game runs, but I can't do anything until the "freeze" passes.
Just had it happen once outside of the game, while Steam was up.
No issues when Steam is shut down so far.
Thanks for taking time to suggest potential issue, though - wish it was applicable :)
Had some time to try to recall, and I -think- I did a full reinstall of the client and that fixed it. Meaning "uninstall Steam", redownload the installer, then run it. Just make sure to move the steamapps/common folder that contains all the games to a backup location. It should drastically save on re-downloading, and Steam should recognize the files after you move them back to the new steamapps/common folder.
A few might need "verify file integrity," but in my experience almost all worked out.
I wish my memory was better, but I'm pretty sure I did not mess with drivers (other than trying different ports for mouse and keyboard, which did not seem to do much).
I absolutely think it is something to do with Steam (kind of worrying why it would mess so deeply with system resources), as just like you I had no similar issues when Steam was not running.
Anyway, good luck. Hopefully you'll run into a solution shortly. I know how annoying it is :(