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At some point, Libby removed the ability to read books in-app and relies entirely on passing things to Amazon and the Kindle app.
This sucks because I deleted the Kindle app for being annoyingly full of attempts to sell me things.
UPDATE: they didn’t, the option used to be something you chose when you borrowed a book, and some time in the past it became a toggle in the settings - which at the time I probably liked because I was using Kindle and only accidentally opened a book in Libby by accident.

@c0dec0dec0de I can still read in the Libby app. Just started a new book last night. I stopped using the Kindle app because I kept getting errors. Talk to your library to see if they can help. You might also try reinstalling Libby.

@c0dec0dec0de
Maybe your library has enabled a setting to only permit reading in Kindle?

My Libby on Android still lets me choose to read in Libby instead of Kindle.

Libby version info:
version 8.1.0
com.overdrive.mobile.android.libby

And the Libby website indicates reading in Libby should still be available:
help.libbyapp.com/en-us/catego

help.libbyapp.comReading books

@c0dec0dec0de
Glad you found it!
I also don't like the Kindle reader but do have to use it at times.