Kind of, they did the Steam Link which was local streaming only. They also had the Steam Machines which were made by third parties. From what I recall the Steam Machines were overpriced for what they were and SteamOS + proton weren't nearly as good as they are now.
I think that rumor was mostly based on an old screenshot from a documentary and the korean filings for a new WiFi6e device, which turned out to be this deck revision, so I'd put less weight on those now.
Are there any other clues about them working on the console?