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Originally I only had 1 Steam folder on C: and 1 Steam folder (the Steam Library) on D:
Did not have issues with the Steam library up until a couple years ago when Steam on its own created another folder in D:program files(x86) and started installing some games there, leaving me with 2 Steam folders on the same hard drive. I can't even choose where the games are installed for some reason, so I don't know what I could have done to cause this.
Coincidentally I haven't been able to enjoy playing any Steam games for about 2 years since I spend far more time troubleshooting than playing.
Part of the problem is that Steam now only allows one SteamLibrary per drive, and you have two on the D: drive and that's messing with Steam.
As to what caused Steam to try installing games to D:\program files (x86), that sounds more like a Windows problem. Namely that the default location for older x86 software was changed from C:\program files (x86) to D:\program files (x86). I know this can be done because I did this on a computer years ago where the boot drive was really small, so I changed it so all software defaulted to D:\program files, which was a vastly larger drive. But unless other (non-Steam) software keeps defaulting to the \program files (x86) on the D:, that's not the problem.
Unfortunately, you may need to uninstall Steam and try reinstalling it. Yes, this may mess with some game installs and require reinstalling them, but that may be the only real fix.