Not sure if it is related to the new version, but earlier today before I updated the 7D2D Mod Launcher, I had no issue launching 7D2D from within the launcher. Post upgrade, if I try to launch 7D2D from the launcher it will not recognize that I have steam running. I get the "Could not initialize steam. The steam client is not running or no connection possible".
I can run 7D2D from the steam library without issue.
I completely uninstalled the 7D2D Mod Launcher and re-installed, but same issue.