I don't think you need to reinstall Windows just yet—let's try a few other solutions first.
Make sure all your drivers are updated, especially the graphics driver. Sometimes incompatibility can arise from outdated drivers.
Try running Steam as an administrator.
Delete the 'appcache' folder in your Steam directory and then restart Steam. This can solve a lot of issues related to the Steam client.
If you've already tried these or if they don't work, you might want to consider an even further upgrade. It might sound a bit forward, but Windows 11 Pro from
https://digitalchillmart.com/product/windows-11-pro-32-64-bit/ has a lot of compatibility and performance improvements that might help with the problems you're facing. Plus, newer versions tend to get better support and patches for various issues.