Let me expand a bit.
This functionality is for incorporating python libraries (think http like https://docs.python.org/3/library/http.html) and having them automatically included in every automation script. The problem with python libraries is they'll have their own dependencies (like re the regex library). I've found there are some libraries like re that are sort of imported automatically by the framework (not sure if it's something we do explicitly or something that comes from having Jython) but don't have the methods the python script would be expecting which makes the import fail. This is the part that I ultimately ended up avoiding.
If you're using this to store your own repeatable blocks of code (and not import third party libraries), you should look at our library capabilities for automation scripts (https://ibm-maximo-dev.github.io/maximo-autoscript-documentation/coreconcepts/libraryscripts). In 7.6.1.X we added the ability to invoke specific methods inside the script (previously you had to let the whole script run). I used this extensively in my qualification enhancement for example (https://community.ibm.com/community/user/asset-facilities/blogs/steven-shull/2022/05/13/enforcing-qualifications-in-maximo?CommunityKey=ed77c224-45e2-47b0-b574-cc31496f9a41).