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For the majority of games download time is not counted as the game exe needs to running to track time.
And OP, it counts cause "play time" is simply "time the connected .exe has been opened". Nothing more, nothing less.
Edit: Also, make a manual ticket. Steam Support knows of launchers, you'll get your refund.
Explain that the time was spent downloading the game in the launcher-not playing. You should get a refund.
Link: https://help.steampowered.com/en/
Manual refund:
Help > Purchases > click on game > "i've question about ..." > fill contact form