this post was submitted on 24 Sep 2023
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No, it explicitly does not work that way. If you share a game to another family member, and that family member plays that game, you are not allowed to play any other game at all on steam.
"A Steam library can only be used by one user at a time to play one game at a time. The same is true if that library is being accessed by another user via Family Sharing."
https://help.steampowered.com/en/faqs/view/57A7-503C-991F-E9A8#:~:text=A%20Steam%20library%20can%20only,another%20user%20via%20Family%20Sharing.&text=Rate%20limit%20exceeded-,A%20Steam%20account%20may%20authorize%20Family%20Library%20Sharing%20on%20up,in%20a%2090%20day%20period.
I know the wording there is fucked up, but have you used it? Because you can play two separate games at the same time with it, but you can't play the same exact game as each other. I use it all the time to play stuff my sister has that I don't, while she plays something else.
Unless you've got some weird special option, they're right, as soon as you launch a game in your library, it becomes unusable to family sharing, my wife and I use it but it's very limiting in that aspect.
It even notifies you when the "family library" becomes available.
Two DIFFERENT games will work. Playing the SAME game SIMULTANEOUSLY will not work.