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to the best of my knowledge if two people are sharing their Libraries with you, and they both have some of the same games. You will *always* be only able to play the game of the "first person" who did the Family Share with you.
So if friend Adam shares their Library with you.. and then your second friend Ben shares their Library with you.. and they both have "Cool Game 4", you will *always* be able to only play Adam's version of "Cool Game 4" and never Ben's.
Which does lead to the poo thing where Adam is using his Library.. but Ben is not.. so now you cannot play "Cool Game 4" because you are unable to play Ben's version of that game .. even tho Ben and Adam both have it.
Again that is just my understanding of it. Hopefully someone else will come along to confirm whether or not my understanding is correct.
https://support.steampowered.com/kb_article.php?ref=3784-QLBM-5731