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This is a lot to ask, but if you're feeling particularly intrepid you could try bringing out the big guns: Microsoft's SysInternals page has a program called Process Monitor. It makes a huge log of which program did what while it's running.

https://docs.microsoft.com/en-us/sysinternals/

If you run it (procmon.exe), it'll start up by showing a list of filters. Here's a page showing how to add a filter for file deletions.
https://mikeberggren.com/post/135351739546/procmon-delete

If add that and hit ok, then try to install Fleshcult in Steam, you might see an entry in the big list for something deleting fleshcult (and probably a ton of unrelated deletions besides). By double clicking on the entry you can find out lots of stuff about that program and what it thought it was doing.

This is what it gives me.

Looks like that event is just Steam deleting a temporary file that was used for the download, after copying the exe into its final location in SteamApps/common/Fleshcult/fleshcult.exe. If there's no deletion from that final location, that suggests that Steam couldn't write the file there in the first place.

To get a broader picture we could try removing the filter for deletions and replacing it with
Path   Contains   fleshcult.exe   then Include

Install fleshcult yet again and wait for it to get deleted again, and you'll get pages and pages of events. You could save the log as a spreadsheet and send them to me. To do that, go to File -> Save... and pick Events Displayed Using Current Filter and Comma-Separated Values and hit OK. If you could email it to me at jack@fleshcult.com I'll pore over it and compare it to what happens on my computer.

Dang, it's really crazy that this is necessary. I feel gaslit and I'm not even the one that it's happening to!

I figured it out myself - I noticed a thing called Segurazo was acting up a lot in the logs, so I looked it up, and its apparently a very stubborn antivirus/actual virus? I honestly cant tell from how they promote themselves, but I remember trying to uninstall it in the past and apparently it didnt erase completely, making it contionously delete the file. Kinda strange it only picked your game, specifically yours. Bad luck I guess lol. Though as long as its quarantined it works flawlessly

Oh, well done! It's a shame fleshcult can't possibly live up to this much build up, but I'm glad your machine's cleaner and relieved it wasn't Windows itself. At least in your instance...

I've been assuming fleshcult was getting mistaken for malware but now I'm wondering if Segurazo mistook it for antimalware somehow?