Perhaps his time to act simply has not come yet. I dunno, maybe it is his attire, and sometimes his impudently lustful expression on his face that make him look like a villain pimp who has to pretend to be a respected bartender
But seriously, I can't point it out directly, but something feels off with him. Why was he in the store at the moment when MC and Emma were there, and later photos appeared from there? Even if he has nothing to do with this, it’s still a very strange scene, why show it at all, and focusing the MC’s attention on this “Oh, it’s Steve, what is he doing here?”
Yes, the MC let it slide and forgot about it, but we remember about the “rifle on the wall,” right? If it appears in the plot, it means it was put there on purpose
Basically, it seems like every man in Hillside other than the MC turns out to be a traitor, a rapist, a murderer, a psycho, or an douchebag at best. So I don’t see a better figure for the role of a vile traitor than Steve. He is the best option for the Wolfenstein gang to get close to the MC & Charlie unnoticed. I'll be glad to be wrong about this, but for now the game proves me right