It’s a chemical change that occurred because a new substance formed.
Even though not much seemed to change, the question mentioned that Steve is unable to reverse the substance, which means there was a chemical reaction. If he was able to reverse it by heating or stirring, this would be a physical change because those can be reverted back to its original property.
As he was not able to do so, this was a chemical change. A new substance was formed. I think there was also a precipitate involved because of what was produced at the bottom, which is also a chemical change.
Hope my explanation was clear!! :)