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https://support.steampowered.com/kb_article.php?ref=7418-YUBN-8129
Here is what I suggest in situations like yours...
Don't install the games to the USB using the "add a library folder" feature or other, but simply STORE the files there instead.
You can simply drag and drop the games from the USB to the internal drive on your laptop when you want to play. Yes, this does limit the number of games you can have installed and running from Steam all at once, but it does solve your storage space problem, and helps to avoid the potential issues from running them from an external drive.
You "can" do it from the USB, as in actually installing the games there, but it is just not "recommended".
You also must have the .acf file for that game when you drag and drop them this way. If it interests you to do this, further explanation can be given if needed.
EDIT..This method is especially much better if your laptop has an SSD. You'll want to run games from your laptop's internal SSD anyway, in such a case, especially if that game can benefit from the performance of an SSD.
This is a fantastic idea.
It's a win-win.
And it will not be slow, it'll actually perform pretty fast than your normal USB drive.
Plan on doing this in the future.
https://youtu.be/OwNr_WCpzRc
It's not just about performance. There can be security issues, as well as Windows Power Saving features that make the drive disconnect at inopportune times. Not everyone knows how to set that stuff up to be avoided, so that is why Valve says it is "not recommended".
Yes, people do it all the time and it works, but it is still not recommended for the average user, copy and paste or not. And "drag and drop" is not the same as "copy and paste". Or, right click and "move" instead of "copy".