Libraries aren't available in Lightning Experience Files

Users may report that they're unable to Create Folders in Libraries in Lightning Experience because Libraries aren't visible or available in the Files navigation menu item in Lightning.

When Community admins attempt to Find and Create Asset Files in Experience Builder, they may also encounter the message, "Libraries aren't enabled. But you can still upload images to use as asset files. Asset files you upload here are stored as Salesforce Files, and aren't shared with the org asset library. To enable libraries, contact your admin or see Set Up Salesforce CRM Content."

After an administrator has Set Up Salesforce CRM Content for your org, they should also verify that affected users are assigned content licenses and are members of desired libraries in Classic. See Create Libraries for more details.