Essentially this is breaking any game that uses Steam's VAC authentication.
Including but not limited to:
Counter-strike: Global Offensive
Counter-strike: Source
Counter-strike
Half life 2 Deathmatch
Team Fortress 2
Day of Defeat Source
Fistful of Frags
Call of Duty: Modern warfare 2
Call of Duty: Modern warfare 3
Dota 2
many Half life Mods
many Source mods
It has nothing to do with VAC. It also happens to occur to non-vac games like Americas Army PG or Assetto Corsa or... a load of others. For some reason it did not occur to me yet with UT2004 which is a single core dx9b game which is not making use of any Steam proces during the play except from the ingame overlay.
Steam Client Bootstrapper is causing the issue. It crashes and with that it takes down all games that are running under it.
Opting into the beta however this morning helped. So far no crash in about 8 hours.