If you got that error when Steam Client is running and you run the CS Launcher inside the GUI, there might be some incompatibility with the CSWZ steam library - since we know its steam and non-steam compatible. You can try this just to check, run CSWZ as non-steam (w/o Steam Client) with internet. CSWZ updates automatically if there is one, more the same as Steam Client when initial run. Then, stop it. Now log in again on Steam Client GUI and start the game there. It works fine on my end with Steam Client, and auto-detected too.. I just tried it using the same procedure I mentioned. I only simulated this for you, since I don't use Steam often.
I tested all CS version (v1.6, CSS, CSGO) and all worked fine on Steam on my end.
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