Confirmed to still work as intended.
The system fetches steam information from the subscribed modules on startup and copies everything to the mods folder. If the Mod is the active campaign, it puts it in an Input folder and throws a message that the mod will be replaced after a restart.
Copying is indeed something Steam does not do by itself, the back-end provides mod information and "subscribed"/"downloaded"/... events that get handled at run-time.
A common problem might be file permissions (steam mods are in Program Files) or maybe very bad connections, not allowing the download or information fetch requests to occur properly.
Last edited by Larian_KVN; 19/09/17 10:21 AM.