Hello @sjakk, please copy the contents of Steam Runtime Diagnostics from Steam (Steam -> Help -> Steam Runtime Diagnostics) and put it in a gist, then include a link to the gist in this issue report.
Here's your issue: https://bugs.archlinux.org/task/78625
Steam is now using xdg-desktop-portal to call a file picker of your choice. At https://gist.github.com/sjakk/f8265f3ea0057c7faa3713fcaa6db536#file-gistfile1-txt-L7176-L7194, the runtime diagnostics is telling you that you don't have xdg-desktop-portal installed as well as a common file chooser interface to go along with it. Give https://wiki.archlinux.org/title/XDG_Desktop_Portal a read.
This is a distro package issue. Separately, #9584 is tracking the missing fallback to an alternative file picker.
Nothing extracted yet.
Your system information
Please describe your issue in as much detail as possible:
I cant switch my profile picture im using gdm as desktop environment and thunar as file manager
gist steam runtime diagnostic
Steps for reproducing this issue: