Are all your friend's games disabled or just a few?
If some are working, some are not working, maybe publishers have removed their games from Family Sharing.
It could also be possible that your PC was removed from your friend's list of Family Sharing devices. Ask you friend to take a look if your PC is still there. (Do you use a new PC? Have you installed a new OS?)
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if it was removed usually it'd ask if I would ask for permission. I did not do anything different to my pc. I did notice I can launch the games from the steam file directory directly but not via steam itself.
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Does your friend share his/her library to someone other than you?
Steam doesn't allow more than 1 player accessing the same library at the same time.
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I do not believe my friend is sharing with anyone else. Steam still allows me to play the games when I launch them with the app in the steam files but not via the "play" button in steam itself.
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If he is using his library you cannot access it , then you will be redirected to buying a game instead of getting the option to run it .
1 solution to that is , if he is playing a single player game ( or you are ) just run it , then disable your internet connection and the other person can also use the same library .
You cannot both be using the same library online tho
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I have already mentioned that they are neither online or playing.
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I have been using my friend's steam games via steam family share and suddenly I can no longer launch the games.
It does not say "Buy" or anything and they are not even online or playing. When I click on "Play" nothing happens but when I click on "Play" for a game I own it launches normally. I think the family share is still active because otherwise it would ask me if I want to request access. I tried looking online but no one seems to have the same situation as mine.
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