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Does the person sharing games with you share with *other people* besides you?
Like share with someone *not in your house*?
Just because you can see they (the owner of the games) isn't playing any game... doesn't mean some 3rd or 4th person they are sharing their games with isn't playing one.
But is he using his library at all?
Family Sharing limits users to 1 full library at a time.
Maybe try actually completely shutting down the other computers? and then try while your computer is literally the only one turned on?
Correct. Only 1 person can play the library that is being shared at 1 time, unless the person sharing goes into offline mode.