Seems like Unreal Engine version 4.27 has a fix integrated in from the official github fix commit resolving the issue UE-92985 discussed above.
Issue: Unreal Engine Issues and Bug Tracker (UE-92985)
On the project I am working on right now (UE 4.26), I am dealing with this exact issue and I don’t think I can upgrade to a new Unreal Engine feature version right now as it might break certain assets we are using. I’m hoping this change gets integrated into a 4.26.4 update down the line because those updates are meant to include fixes only and don’t break compatibility which is what I am afraid of when upgrading to 4.27…
So far I am using the workaround suggested by @anonymous_user_a55589cf by adding the -game command arguments in visual studio and it works totally fine if I’m logged into Steam.
Another band-aid fix I found that works is creating a shortcut that launches the UE editor on the uproject with the -game flag.
Modify target in the screenshot to be: “C:\Program Files\Epic Games\UE_4.26\Engine\Binaries\Win64\UE4Editor.exe” “C:\PathToProjectDirectory\ProjectName.uproject” -game
Start in: “C:\Program Files\Epic Games\UE_4.26\Engine\Binaries\Win64”
Hope this helps some folks out!