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D:\Steam
Appdata maybe user specific but Steam doesn't use that. I can logout of this windows account login on another and still load Steam without needing to login on it because Steam isn't linked to windows user accounts. Only way for that to work is to have Steam installed to different locations for each windows users.
Mines on D: I had my kids on E and F. Neither could access anyone elses Steam drive as I had that blocked via Windows. Did mean Steam was installed 3 times.
Each now have their own computer but that was the only solution I found worked to prevent use all have to login everytime
(you also have to go through the process of enabling family sharing on each install)
At the end of the day this is a request for a QOL feature, it's probably not high on their list of priorities, that said given the fact that you stay logged in after changing windows user does it seem like a bit of a security issue as well.
It just needs to be changed though getting Valve to do such things can be a chore.
When Steam was built, it was already being built counter to then-current OS specifications.