AppData folders are not the installation directory -- those are the hidden configuration folders associated with installed applications. That will always be the same. Easiest way to think about it is: Windows is your secretary. You tell it where to file documents, but it might leave itself post-it notes on its own desk. It will file folders in the correct cabinet (installation directory) but it will leave itself reminders next to its phone (AppData folders.)
Windows is also like an over-protective parent who will cancel meetings or not answer phone calls if it detects "stranger danger." What I'm trying to ensure is that you're clearing REDlauncher to install, be recognized, pass Windows Firewall, Defender, and User Account Controls, and be free to automatically launch -- even if you launch a different program.
So, what may be happening is: REDlauncher is installed in a protected directory. Windows is eyeing it suspiciously, therefore. You launch Cyberpunk or The Witcher through Steam. Then REDlauncher tries to launch automatically alongside it, and Windows goes, "HEY! I knew you were up to no good, REDlunchy! Sit back down! Stay where you are! SIT DOWN!" Reinstalling REDlauncher to the same directory is like having it show back up in the same office, with Windows immediately getting suspicous again. So, we reinstall the program to a different directory (NOT in the main waiting room,) giving it the freedom to skip the secretary and just come right to our office when called. Windows will still install the "AppData" to the same folder (the secretary leaving itself a note on its desk,) but it won't be so suspicious of the program launching at "unexpected" times.
And again, this is just a quick thing to try to rule out that possibility. It could still be something totally unrelated.
In general, when installing any sort of game or application that is not directly produced by Microsoft itself, it's best not to install under the Program Files or Program Files(x86) directories. Those are the directories that Windows is always staring at like a paranoid hawk.