I have undertaken your advice and to no avail.
I have subsequently running as admin gone through the labourisous process of:
Run steam as an Admin and uninstalled GALCiv3, shutd down my PC.
Run Steam as admin, uninstalled steam, shut down my PC.
Ensured both Steam and GalCiv£ were absent from their respective folders. Shut down my PC.
As Admin, Installed Steam shut down my PC.
Run Steam as Admin, installed GalCiv3, shutdown.
Run VC_redist.x86 install as Admin, shutdown.
Run as Admin DXSETUP shutdown.
Run Steam as and Amin, verified files, one not validated and will be reaquired (This has always happened since the update)
Run GalCiv3, game fails to run as per my earlier messages. Steam logs the game as running but it isn't.
Note: Pref.ini file is not being created.
stademock in his post above re-iterates my own thoughts and findings.
Any further ideas what was broken with the update back in December?
Edit: Note on Pref.ini file not being created.