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^ That means the library is in use by someone else at the moment. Either your friend is playing one of their games or someone else they also share their library with is playing one of their games.
Any library can only be used by ONE user at any given time, so if someone plays one of your friends games, either your friend or someone else they share with, the games are unavailable to play for you.
Neither of which unfortunately, we cant pin point exactly whats causing it but its been happening for months
Did you ever find a fix for this?