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Family Sharing allows family members to share games while keeping their accounts separate.
Steam game licenses are only one per account, and they cannot be transferred to a different account. So if all three of you wanted to play a game at the same time, each account would have to have its own purchased copy of whatever game it is.
If you want them to be independent accounts with out having to shuffle around who can play what, at what time, then yes, you will have to re-buy the games.
I share with my wife and son. If they play a game so often that it interferes with what I want to play, I buy them that game as that shows it is a game worth buying again. We also own several games that I purchased for us all to play together (Terraria, 7 Days to Die, Valheim, ect.) since Family Sharing will restrict access to one person.
As someone who mainly plays single player games, it was less of an issue to share for me. It may be harder for someone who plays mainly MP games.
IIRC only one account can access a shared game at a time.
So with multiplayer or co-op games you play together, you'd probably have to buy a copy for each account.
Only one account can access the shared library at a time. The downside to Family Share is you share the Library in it's entirety at one time, not individual games in the Library.
So if you have a library with 1k games and share with two people, only one of the three can use a game from the library and the others are locked out of the entire libraries use.
If the main owner starts a game, the one borrowing will get a warning of five minutes, before the game closing on them, as the owner has priority.