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Since your Windows' user folders are unique for each Windows user, those save files are not shared between them. The ideal way is that Windows-User1 has their own Steam-User1 account, and Windows-User2 has their own Steam-user2 account. It's just as confusing when two people are trying to use the same Steam account and save files are being overwritten by the other's progress.
Use Family Sharing if you want to share the library to multiple Steam users on the same system. Because it is now stored on the server side instead of the local machine, it should work with multiple Windows user accounts.
If a game is designed to save a file to %AppData%\Roaming\GameName, there's where it is saved, and that's where it tells Steam to get it.
Steam can't see if Windows is resolving %AppData% to Fridge or Freezer, it only knows to look into %AppData%. So if it's Fridge's files or Freezer's files, it will save them as if they were the same file if you're the same Steam account across both Windows logins.
Create a Steam Family. Have them create their own Steam account. They're free. Then have them join your Steam Family and you can share games from your library with them.
Do it the right way.
Most games on Steam do not do this.