https://bugs.winehq.org/show_bug.cgi?id=38114
--- Comment #7 from Nikolay Sivov bunglehead@gmail.com --- I'm not sure it's invalid. Are we talking about "Install Game" menu command? It brings up dialog where you can select existing Steam Library (on particular drive) or use "Create New Steam Library on drive X:". So what doesn't appear? You don't get any items in Choose location to install list?
And no, you don't have to add anything in Settings -> Downloads, instead if you choose "Create New Steam Library" it should appear in Steam Library Folders in Settings, that's all.