This is a known issue, tracked as steamrt/tasks#954 internally. The diagnostic tools stuff wasn't converted to the container mode yet, and is trying to run a container inside the container, which won't work.
<some warning about hardlinks>
This will also make getting diagnostic information extremely slow (it fails, but it takes a long time to fail), especially when running on HDD rather than SSD. When the diagnostic tools are fixed to be invoked in the right environment, that's likely to resolve the slowness and the warnings about hard-links as a side-effect.
This is now mostly fixed.
The "LD_* scout runtime" information: section still doesn't work: it tries to run ~/.local/share/Steam/steamrt64/steam-runtime/amd64/usr/bin/steam-runtime-system-info, which doesn't exist. Ideally, the containerized Steam Client would try to run steamapps/common/LegacySteamRuntime/legacy-steam-runtime steam-runtime-system-info if the Legacy Steam Runtime app happens to be installed, or skip this section otherwise.
The remaining sections (for SLR 1.0, 2.0, 3.0) work as intended now.
Nothing extracted yet.
Your system information
Please describe your issue in as much detail as possible:
Running Help > Steam Runtime Diagnostics only produces this output:
Complete log: steam-runtime-diagnostics.log
Steps for reproducing this issue: