Did you tried it with X11? Does that work?

Launches perfectly in a proper X11 environment. Other X11 apps work through Xwayland as well.

**EDIT **
I found a fix that works for me! Seems there was a rogue environment variable XWAYLAND_NO_GLAMOR that was wreaking havoc. Unsetting that fixed the issue.

I'm also seeing this exact behaviour. I'm running on Arch through XWayland, client launches fine in an X11 environment, and Xwayland seems to behave fine for other apps.

Logs:

steam.sh[738047]: Running Steam on arch rolling 64-bit
steam.sh[738047]: STEAM_RUNTIME is enabled automatically
setup.sh[738122]: Steam runtime environment up-to-date!
steam.sh[738047]: Steam client's requirements are satisfied
tid(738178) burning pthread_key_t == 0 so we never use it
[2024-03-16 02:56:51] Startup - updater built Mar  6 2024 20:27:25
[2024-03-16 02:56:51] Startup - Steam Client launched with: '/home/notnight/.local/share/Steam/ubuntu12_32/steam'
minidumps folder is set to /tmp/dumps
03/16 02:56:51 Init: Installing breakpad exception handler for appid(steam)/version(1709846872)/tid(738178)
SteamUpdateUI: An X Error occurred
X Error of failed request:  BadAlloc (insufficient resources for operation)
Major opcode of failed request:  149 (GLX)
Minor opcode of failed request:  5 (X_GLXMakeCurrent)
Serial number of failed request:  0
xerror_handler: X failed, continuing
Looks like steam didn't shutdown cleanly, scheduling immediate update check
[2024-03-16 02:56:51] Loading cached metrics from disk (/home/notnight/.local/share/Steam/package/steam_client_metrics.bin)
[2024-03-16 02:56:51] Using the following download hosts for Public, Realm steamglobal
[2024-03-16 02:56:51] 1. https://client-update.akamai.steamstatic.com, /, Realm 'steamglobal', weight was 1000, source = 'update_hosts_cached.vdf'
[2024-03-16 02:56:51] 2. https://cdn.cloudflare.steamstatic.com, /client/, Realm 'steamglobal', weight was 1, source = 'update_hosts_cached.vdf'
[2024-03-16 02:56:51] 3. https://cdn.steamstatic.com, /client/, Realm 'steamglobal', weight was 1, source = 'baked in'
[2024-03-16 02:56:51] Checking for update on startup
[2024-03-16 02:56:51] Checking for available updates...
[2024-03-16 02:56:51] Downloading manifest: https://client-update.akamai.steamstatic.com/steam_client_ubuntu12
[2024-03-16 02:56:52] Manifest download: send request
[2024-03-16 02:56:52] Manifest download: waiting for download to finish
[2024-03-16 02:56:52] Manifest download: finished
[2024-03-16 02:56:52] Download skipped: /steam_client_ubuntu12 version 1709846872, installed version 1709846872, existing pending version 0
[2024-03-16 02:56:52] Nothing to do
[2024-03-16 02:56:52] Verifying installation...
[2024-03-16 02:56:52] Performing checksum verification of executable files
[2024-03-16 02:56:52] Verification complete
UpdateUI: skip show logo
Steam logging initialized: directory: /home/notnight/.local/share/Steam/logs

XRRGetOutputInfo Workaround: initialized with override: 0 real: 0xedd01dc0
XRRGetCrtcInfo Workaround: initialized with override: 0 real: 0xedd00500
crash_20240316025654_5.dmp[738192]: Uploading dump (out-of-process)
/tmp/dumps/crash_20240316025654_5.dmp
crash_20240316025654_5.dmp[738192]: Finished uploading minidump (out-of-process): success = yes
crash_20240316025654_5.dmp[738192]: response: CrashID=bp-d0356dc0-90ff-49e4-8a4b-0d3492240316
crash_20240316025654_5.dmp[738192]: file ''/tmp/dumps/crash_20240316025654_5.dmp'', upload yes: ''CrashID=bp-d0356dc0-90ff-49e4-8a4b-0d3492240316''
/home/notnight/.local/share/Steam/steam.sh: line 813: 738178 Segmentation fault      (core dumped) "$STEAMROOT/$STEAMEXEPATH" "$@"

This works for me as well. But not having this environment variable set causes some strange artifacts in applications like Discord.

Tested today not sure if it yesterday update (I'm on artix). But I can launch steam client now.

Still can't change uncompressed screenshot folder: #9846 :(

Running with XWAYLAND_NO_GLAMOR=1 seems to have been fixed