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It is. It was only temporarily removed in 2020.
Then they will show as offline on the profile but they could still be playing right then.
Another possibility is that the persons you share with are sharing with more then just you and someone else is using the library at that time. If its someone that is not on your friend list you wont see that they are playing.
My issue was that my friend wasnt playing any game at all but was online with steam running on the background not even the app was open