I know that 1.03 was released as a beta on steam, so try doing it that way (right click game>properties>beta). But I know some people had that same problem with the manual patch, that was fixed with verifying game cache, then pasting the files afterwards.
I'd suggest copy pasting the contents of the up to date Aragami game folder somewhere outside of your steam folder. Then when you have the patch unzipped just drag the contents of the "Aragami" folder onto where you had just brought your copied Aragami folder. It will ask you if you want to replace the files click yes. This replaces the exe and some other files so that the game will work properly. That's how i got it to work and if you do it this way it won't be linked to steam but you can always add it as a non steam game if you so choose.
You can just get version 1.03 straight from steam since the devs added it as a beta.
Well the reason i dont do that is so i can play on either the 1.03b version or the up to date version at any time without any hassle. 1 shortcut to the 1.03b and 1 to the up to date
