Last update broke the game on M1, M2 Macbooks

We were unable to reproduce this on our hardware. Could you upload your client_log.txt file? You can use this helper to find out where this file is located https://support.klei.com/hc/en-us/articles/360029881191-Logs-and-Useful-Information-for-Bug-Reports-for-Don-t-Starve-Together and this helper in case it is a permissions issue https://support.klei.com/hc/en-us/articles/360035294792-Mac-Catalina-OS-Getting-an-Unable-to-read-from-config-directory-error-message but this last one may be not useful for your situation the log should help in getting to know what is going on.

Changed Status to Can't Reproduce

I've got the same exact issue on my M1

client_log.txt here you can find my client_log.txt. If you need I can provide my friends .txt file later on, too

I found a fix from another forum. Go into the steam common apps and find the dont starve folder and move them all into the bin (I think the path is ~/Library/Application Support/Steam). Once that entire folder has been deleted, you can reinstall the game with no problem. 

Thank you so much @windowwipeer you saved us! It's successfully downloaded and working both for our M1, M2 macbooks 

Would either of you have any ideas on what put the game files in this state in the first place with Steam? Recent installations, swapping accounts to install things, unique install directory, etc?