When released on Steam, will everything be downloaded from Launcher? Or will the Steam upload be the full game + Launcher, then additional updates fetched from Launcher?

Launcher can operate either way. You can wrap the latest version of your game into Launcher and then distribute it on Steam, so no additional downloads are needed (in which case game delivery costs will be on Steam). If you want to quickly deliver an update, you can use Launcher without the need to wrap the game into Launcher and upload it into Steam again.

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