Update: A better solution if not “the” solution was found by Aijalon a few posts down. If you browse to the location of the .acf file mentioned in the error you can follow his steps or do what I did which was fully close out of Steam, delete or move all the .acf files from that directory, re-launch Steam and you should be able to update the game. Installing on another drive did work as well but that may not be an option for everyone.
So I may have found a solution although not sure why it works. I’m now able to reinstall the game on my C: drive but not my D: drive where I had it previously with all my other Steam games. Those having the issue, if you have a second drive, try installing on that one. Will update again once the download/install is complete and if I’m able to run the game.
It might also have to do with the directory you have installed the game. Make sure to try closing steam and starting it with left click and choosing to “run as administrator”.
Manage to make it working by make a backup of the said acf file on the error message, emptying the original, running New World >> Error Message >> Remove the empty acf, rename back the backup file to original file >> running New World again, it is updating.
Installing to my other drive seems to have worked which is annoying but it works. All other games still download like normal only new world had the issue lol. If I wasn’t so hooked on this game i would have just said screw it XD.
I tried the solution Aijalon posted but it did not work for me. However, there was a file called ‘appmanifest_1063730.acf.tmp’ which I deleted and it started working.
Good to know, so it must be something to do that particular 1063730.acf file, which after is being deleted, update should start working again as Typicalsarena mentioned as well earlier on.