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I am happy to share that we have fixed this bug in our latest release – 25.4.1 which is available worldwide now.
Going forward, our goal is to fix as many top User-Voice bugs as possible and as frequently as possible. Given the nature of the fixes, some of the bugs will take a longer time to fix, but we are on it.
You can update to the latest release using Creative Cloud desktop App: https://helpx.adobe.com/in/creative-cloud/help/creative-cloud-updates.html
Thank you for all the feedback. Keep it coming!
An error occurred while saving the commentAaron commented
Happening to me as well. Illustrator 25.3.1 on Big Sur. Only in illustrator. Libraries work perfectly fine in Photoshop. My current work around is to right-click a vector library item in photoshop and select Edit so that it opens in Illustrator and then I copy/paste it into the file I need it in. Definitely not ideal.