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...