Bought Morrowind via Steam. Played there and unlocked all areas, etc., all while starting launcher via Steam interface. IF the game is started manually, bypassing Steam, it refuses to accept Morrowind is unlocked already, spam an "Upgrade now" message at start screen, states IF you already have it, you'll need to adjust settings in-game. However, once in game, Morrowind was already checked as being active in the Stories menu. BUT, ALL but roughly 2 fast travel stations are greyed out in Morrowind. Hovering the cursor over them has an "Upgrade" message despite the fact they are already unlocked. I didn't risk fast-traveling to the couple shrines that were still white.
Only reason I even bothered with this was because the game keeps crashing, which seems to be a server issue. Other posts suggested it was a Steam issue and bypassing Steam let you back in, which seems true, but I'm not interested in loosing items, quests, etc. if the game is bugged atm.