Earlier quoted context omitted.
Nintendo Switch cartridges don't have this problem, mostly. It's the reason I buy physical for the family library. Nintendo's digital licensing is terrible (slightly less so with Virtual Cartridges, but miles away from Steam Family) and doesn't really work for a multi-Switch household. But, I was traveling for work and brought the non-"home" Switch with me along with a copy of Breath of the Wild on cartridge. I fired…
...huh, do the online license checks only happen if you have the cartridge sharing stuff enabled? Wondering when/if I would run into this, I haven't yet. But I never use their "virtual game card" system, I only have one Switch and I think the whole thing is overcomplicated and too limited.
Now, i got my kid another switch and he decided he wanted his own account tied to the family nintendo plan and now i am learning what a pain the virtual cards are. If he had just let me put my account on his switch he could have all the games i have, but that's not what we went with ;-)