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Create a steam account for the server and use that to login
https://developer.valvesoftware.com/wiki/SteamCMD#With_a_Steam_account
Then you can use the linux dedicate server instead of a workaround. (you don't need to buy the game to use the dedicated server)
Just reacting to the message from the OP: I myself have installed a Valheim dedicated server on a VPS from Contabo. I have used the Docker image from Lloesche (lloesche/valheim-server-docker) - there is a linux server available, no need to use Wine.
All in all it took me perhaps 30 minutes to get the server running, plus 1 or 2 hours to fine tune things (enable the firewall on the VPS, install and configure Fail2ban, change SSH settings, schedule an automatic upload of Valheim saved game to my private NAS, enable automatic patching of Ubuntu).
I strongly recommend the Docker image, it is very well packaged and it comes with automatic update of the Valheim server, automatic backup of the game's world, and automatic reboot of the server if needed.
I have the basic VPS from Contabo at 5 € / mo and it runs really well. With 5 friends connected
to my game server the CPU load was around 25% and 2 GB of RAM consumed.
https://imgur.com/pzDRQV6
Hope this helps.