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MountFilesystem( 321 ) failed: SteamMountFilesystem(???) failed with error 116: Cache needs repair
AppID 321 is HL2DM.
Assuming you've already checked to make sure you have enough free disk space, try the following:
#1 - In your Steam Games Library, right-click on Half-Life 2: Deathmatch, go to Properties > Local Files tab, and run a Verify Integrity of Game Cache.
Once that's done, run Overwatch. If you still get the error, try:
#2 - In your HL2DM folder (e.g. C:\Program Files (x86)\Steam\steamapps\YOUR_ACCOUNT\half-life 2 deathmatch\), open the hl2mp folder. In there, you'll find a cache folder. Delete it, then run step #1 again.
Once that's done, run Overwatch. If you still get the error, try:
#3 - In your SteamApps folder (e.g. C:\Program Files (x86)\Steam\steamapps), find the half-life 2 deathmatch.gcf file and delete it.
Once that's done, restart Steam then run Overwatch.
One of these steps should solve the problem. If they don't, let us know!