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If you have more than one storage drive, go to steam -> Right Click on Lethal Company -> Manage -> Browse local files. Whatever drive letter shows up in the very top bar is the one you should use to install. (Capital Letter Only)
r2modman isn't very smart, and does not check to see what mods were removed for a release. You'll need to completely delete all your mods (or just delete your mod profile) and re-download the pack when updating.
Our first time installer searches the entire selected drive for the .exe and may take time. If you're using the launcher, sometimes it just takes a bit longer to download.