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If their account is not from the same country, different store/currencies, yes it will be blocked from sharing for this game and Elden Ring.
It sucks.
Developers choose to allow sharing on a game by game basis. They can choose not to let one game be shared, but allow another.
They can also choose to change it at any time.
Currently or in the past? The developer can change the setting at any time.
Was it a recent purchase?
I share with my son and sometimes I have to re-log onto his computer to download the game as it doesn't show up. After I start the download I can switch back to his account and it will be visible.
Try logging into the system you want to share it with and enabling Family Share again.
Also, if you are sharing with more then just that one friend, make sure no one else is currently using a game from your library as that will prevent someone else from using it during that time.