The irony there is that the Steam Machine can't actually run the full Steam library since most games aren't made for Linux. Most run on it via Proton, many even run well, but it is very far from "all the games play without issues".
Can you imagine if the PlayStation Store sold games on the PS5 that you couldn't play there because they were actually Windows games?
Since it's not locked down I assume you could install windows on it
Steam Deck works just fine, so I guess the Machine will too.
Steam clearly shows a badge showing if it runs on Linux. You can filter out stuff that won’t run.