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You may be getting this error when trying to start a steam://
URL because of a faulty registry. This problem may occur if you transfer Steam to a different drive/directory.
To repair it, you should change the value of HKEY_CLASSES_ROOT\steam\Shell\Open\Command
so it matches to that of the new drive/directory.
Example
If your old steam directory was:
C:\games\Steam
Then the value of the key should look like this:
C:\games\Steam\steam.exe" "%1"
And now you've moved it to
D:\games\Steam
The new key value should look like this:
D:\games\Steam\steam.exe" "%1"