Same issue since today. It seems to be a widespread problem, but the only "fix" as of now seems to be reinstalling windows from zero.
I think we should wait for an update from Steam at this point.

Ouch! Can you link the discussion for that here ?

I'm experiencing the same symptoms.
Logging in takes a long time, and almost all games won't launch after connecting, right? Is that right?
All the methods I searched didn't work.

The only solution was to use a VPN to bypass the login process and connect immediately.

Perhaps some users' IP addresses were banned by Steam after the Silksong traffic surge.
Since you can't connect even though you're on the same network, I suspect there's something wrong with your user ID that Steam is interpreting as a connection issue.

Among the games in my Steam library, the ones that require the launcher didn't pop up after pressing the "Start" button and wouldn't launch.
So, utility applications that don't require the launcher launched immediately launched.
This suggests Steam isn't granting the user permission to launch games (the kind that require connecting to Steam Cloud to save information).

Formatting may be the only solution, but I'm not sure. It takes too much time and requires reinstalling too many programs, making formatting a difficult option. I hope steam will fix this issue soon.

I can't even log in, and i don't want to use a VPN to bypass the log in. I think i will wait for them to fix this, since there are several posts about this issue.

I think they will fix this soon. They recently (2 hours ago) released an update for Steam Deck to fix streaming from other devices, so i guess they are aware that there is something wrong going on.

жили у бабуси 2 веселых гуся

I've logged in fine on another pc. Will have to try again soon on main.

wow