How to move assets from Photoshop library to be stored in-file?

So I've been working on a large project (across .indd, .ai, and .psd) on my macbook pro and I had a colleague attempting to utilize one of the files I'd created in photoshop - but she told me she the assets were stored in my local library. I didn't make a local library - not intentionally anyway. I looked and sure enough, there was a library in photoshop. I don't remember a prompt - if I am responsible for this library, it was unintentional.

I work in a collaborative environment and I like to have my files be highly accessable to anyone and everyone. I don't really want to have to share the library every time someone wants to use it. So what I'd like to do is remove this library without it deleting assets right out of the document. I can't find a way of doing it - am I crazy? Any help is appreciated!