Don't know if this still works but you used to have to make sure you downloaded the latest version of GFWL. Read this on a Steam help page a while ago...
The dlc items will show up in the Live room in sanctuary. Press E on your keyboard or A on the xbox controller and GFWL will open downloading the dlc. Do that with each item showing up in the Live room and you will get all 9 free dlc. Then go check your Marketplace client, you should see that you have all 5 paid dlc and 9 free dlc installed now.
You can also remove Fable III, then install the latest version of GFWL and reinstall Fable. If you do this, when you launch Fable III and start a new game (note that you may not be able to use your last save), it will say that you're missing something and show all 14 dlc on GFWL for you to download.
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