Yes, the file system shield expert settings is where I set the exclusion.

I am not getting a virus alert. What I am getting is that Steam hangs when it tries to update a game and eventually times out with an error. Temporarily turning of the real-time shields resolves the problem. Since it isn’t a single file as far as I can tell, excluding everything in the Steam folder is the most practical way to go.

But whether or not it’s wise to exclude a whole folder isn’t the issue here. The issue is that the exclusion system doesn’t appear to work since adding an exclusion to resolve a conflict has no affect.