Quick Steam Library Question

So, I don’t really use Steam and I have a quick question in regards to Steam library management. When pointing to a Steam library in Steam for recognition, the folder to point to is not “steamapps”, right? It’s supposed to be the one higher than that, right?

Does it matter or would Steam automatically be able to see the subsets and fix/understand the file/folder path itself?

Would point it at steamapps, if that does not work, point it at “common”

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