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To be precise its Family Share feature is region locked.
So you can only Family Share with accounts that are both in the same country, so the store region has to be identical for both accounts.
And if you bought the game in another region it can only be shared with users that are also from that region.
If you are both in the same country and store region and it still does not work, make sure that you dont get too many different Family Share connections.
You can only receive games through Family Share from up to 10 different accounts, after that they will still appear in your library but cant be played.