Your system information

• Steam client version (build number or date): 1.0.0.54 (version)
• Distribution (e.g. Ubuntu): Ubuntu 16.04.3 LTS
• Opted into Steam client beta?: No
• Have you checked for system updates?: Yes

Please describe your issue in as much detail as possible:

Error in console: https://gist.github.com/kshatriya-abhay/0dd76d687522f8bfaa1e887e56c2ece6

Fatal error: Steam needs to be online to update.
I presume that steam should connect to internet through VPN. But as shown in the above error, it still seems to be detecting the proxy. I don't know how steam get the network info (about proxy). My current Internet connect runs Steam on Windows (via VPN) but not in Ubuntu.

Steps for reproducing this issue:

1. System configured (apt, bash, NetworkManager) to work with an authenticated proxy server.
2. Use a VPN client connection system-wide.
3. Remove all above proxy configurations. (system not running on proxy then)
4. Install steam from Software Center.
5. Run steam for first time, issue reproduced.