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Your account can only have 1 person per server/world and it is only for that world.
You can create/join multiple worlds, each has its own independent progress.
So for example, if everyone in a family of 4 wanted to play but only one account, they each could play independently on different worlds using the same account, but could never join each other’s worlds with any character other than the first made on that world.
But if you share your library you should be able to be on the same world right?
I’m not sure if that’s what you mean but I don’t think you can play the same game at the same time when sharing your Steam library
Been thinking on this, I believe that if you family share the game on steam, each steam account could independently access the same dedicated or community servers, but local worlds will still only be accessible by the creator as they are the only one who can host their world. You may be able copy the world files between the different folders though.