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Confirm and it will be removed from your library and the family share library.
Mind you that only works for games you own yourself and your own license.
So if multiple people in the family own the same game you want to remove it will just remove your own license but it will still show up in your library because its shared from another member.
You cant remove games you are getting shared, the max there is to use the "hide" option for them.
That only works for "Free to Play" titles.