Hi
I'm running Steam on my D:\ drive, and I've never found any problems.
Try this, download a new install file, and install Steam on Drive D:\ but put it in a new folder called D:\My Steam\. See if the new clean installation runs?
Steam, The Ultimate Online Game Platform Create the D:\My Steam folder before you start the install process so you have a location to select when it asks where you want to install it.
Leave your old install where it is for now.
I'm not sure how your Microsoft account is involved, I have a Steam account with it's own ID and Password.
I just install it wherever and log into my Steam account and all of my stuff comes up.
If the new Install opens and runs normally just cut and paste the SteamApps folder from the old install to the new one, I cut and paste so that it only changes the address and doesn't actually move the files to a new position on the hard drive this will happen instantaneously.
For me it's about 378 Gigabytes and it will do the move and will not try and paste an additional 378 Gigabytes of stuff on my drive. I don't have enough space for that.
If you can now open the new install and see all your stuff you can delete the old install.
Mike