Creative Cloud Libaries right? Not the standard Library using File>Open and choosing and indesign library file and opening that - you're talking about the CC Library panel?
It does sound like something has changed server side rather than on your machines. Libraries are basically little cloud databases and they can fall out of sync if they get stuck in a locked state. The rather dramatic “file is already open by another user” message is usually just the sync engine having a wobble rather than an actual user lock.
- Sign out of Creative Cloud on all affected machines, quit everything, then sign back in. This forces a fresh token and sometimes clears the library lock.
- Make sure the Creative Cloud Sync process is actually running. The Libraries panel in older versions depends on that background process behaving.
- Create a brand new temporary library in the browser version of Creative Cloud and see if 2023 can read it. If the new one works but the existing ones do not, that points to corruption in the original library rather than a version block.
- Check that no one has the library content open in Illustrator or Photoshop. Even old linked previews can occasionally keep a ghost lock.
The fact that everything behaves normally in 2024 and later makes me think compatibility has drifted a bit rather than Adobe turning anything off deliberately. 2023 is still within the usual support window, so this feels more like a sync bug than a sunset.
If none of that shifts it, you may be safest exporting the problem library to a new one using the browser interface. It is clunky but it often resets whatever ghost lock is stuck.
Hopefully that gets you and your team moving again.