The new Virtual Game Card feature lets you easily manage your digital Nintendo Switch games, including lending to your Nintendo Account Family Group members!...
This was way more confusing than it had to be.
TL;DR: You can lend your digital games to friends & family for 14 days, but both consoles need to connect locally to enable this…(?)
You can’t play digital games you’ve lent out during this time. I guess the point is making it similar to giving your friend a physical game cartridge.
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I don’t think you can share with friends? Only if you have a Family account and all the Switches are signed into the same Family.