I have experienced similar problems with moving game files between hard drive partitions on the linux client, so this issue is platform independent. Steam truly needs a dedicated tool for adding existing game files into the library.
Hello @RollingStar, @praashie, are either of you still experiencing this issue on an up to date system?
I can't say one way or the other. Many Steam changes over the years with library folders so I would assume it's fixed.
Thanks for the feedback, closing.
Nothing extracted yet.
Here's how I encountered this bug:
Sorry that it's for Windows, but I don't have a Steam community forums account.