it is trying to install server
seems like Steam is installed, but is SteamVR also installed? You need to add that separately from Steam itself. You will then see two icons if both are running:
yes that is also running on the machine
hmm, that’s definitely strange.
I’d prove that SteamVR is actually working without CloudXR in the mix yet. If you have a wireless HMD like the Quest 2, you can use QuestLink to direct connect to your PC (with a LONG usb-C cable!), and see if steamvr and games/apps run fine. If they do, then I’d need to escalate to someone who understands the installer and verificatios. If SteamVR does NOT work, then a complete uninstall/reinstall may be needed. Or you can try ‘repair’.