I fixed it. If anybody else has this problem right click on it's steam icon then click manage the click browse local files then go up and click common and delete the terraria file from there delete and reinstall it on steam and then it worked for me.
I'm having this same issue, what version of windows are you using? I'm on windows 11 and tried this method but it has not worked I'm not sure if the version even matters, also, have you messed with any cloud settings prior to fixing this issue?
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