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1. Start Finder
2. Then select "Go" in the menu bar at the top.
3. Press and hold Option key (Alt)
4. Library will apper -> Go there
5. Go to Application Support -> Steam and her you'll find regesty.vdf
Here is the bootstrap_log.txt:
[2015-01-23 21:54:38] Startup - updater built Nov 25 2014 13:18:09
[2015-01-23 21:54:39] Verifying installation...
[2015-01-23 21:54:39] Verification complete
[2015-01-23 21:54:39] Shutdown
Solution #2 (The slightly expensive option):
1. Buy a new hard drive, an external thunderbolt connected drive enclosure and connect it to your Mac.
2. Format the new drive as case-insensitive using "Disk Utility". (for this example, I've named the drive "Games", which will be referenced later on)
3. Bring up "Finder".
4. Click the "Go" menu then select "Go to folder...".
5. Type, "~/Library/Application Support" in the pop-up window and click "OK".
6. Copy the folder "Steam" to the root of the newly formatted, case-insensitive hard drive.
7. Run the terminal program. (click the magnifying glass in the upper right and type "terminal".
8. Type the following command, "cd ~/Library/Application*Support", then press "Enter".
9. Rename the existing "Steam" folder by typing "mv Steam _Steam", then press enter.
10. Assuming you named your drive "Games", type the following, replacing "Games" with whatever you named the drive in step 2, "ln -s /Volumes/Games/Steam ."
11. Run Steam.
I told you it was complicated... :-)
Commands in quotes are to be typed in the terminal without quotes.
The nice thing about this option is if you ever have to wipe your main hard drive, you just have to restore the symlink and all your games will be there and you won't have to re-install them.
I hope this helps. If nothing else, it'll help me since this post will come up the next time I Google this issue, after forgetting the solution. :-)
Well there is a 3rd solution - not use crappy software which has such stupid issue!