Now add your steam library folder, on our example its “G:/YOUR_STEAM_LIBRARY”. Now you can add your steam library without problem, Go to Steam, then Settings, open the tab Downloads and click the Steam Library Folders.
In order to fix this issue, make sure that the folders common, depotcache, downloading, shadercache, sourcemods, temp, workshop and other appmanifest files are inside the steamapps folder.
This error is not a bug or something, this is because we’ve added incorrect hierarchy of folders for your existing steam library. If you tried adding existing Steam Library in your Steam Client, you might be experiencing this problem – popping up error message “ New Steam Library Folder must be empty”.