When you install the game in a folder other than the default Steam library, make sure the folder path is not too long. If a file path exceeds 150 characters, the operating system might have trouble reading the file, which could lead to performance issues or crashes.
When this error is displayed, consider moving the game to a location on your PC with a shorter file path, for example, "C::Games". For a guide on how to move the game files to another driver or directory, follow Steam's Moving a Steam Installation and Games article.
Alternatively, enable the Long path support in Windows 11. To enable this feature, open Windows settings, go to System, and then to Advanced. There, turn Enable long paths to On.