This shows up if somebody else uses that steam install (on the same computer) also with their own account. Steam shows then their games that are installed but you don't own them. Just right click and delete local data as always, will remove the game and it will stop shwing up on your account.
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I have something similar in my library The Showdown Effect Beta Strikes Back. It appeared after that update everyone is complaining about.
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Scary shit, I think someone uses your computer for their steam account without you knowing, or you have split personality and its the game of the other you.
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Unless you can right-click on the entry and delete local files, you'd need to log in as the other user, and uninstall the game from there.
As others have said, it's because another person has been logging into their account on your PC.
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When using my families Steam account on my PC (since they can't figure out how to add keys...), I get that, only with 400 games. Its been around for a while.
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This seems more like the prelude to game sharing than anything else. When I had someone else using my PC, their games just appeared in the middle of my library. I just couldn't play them.
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This feature has been there for at least a few years. Only recently it's shown as a separate group, earlier it was just in the list among other games. Sometimes the installed games of somebody else allow to play a demo if the files are the same (e.g. Plants vs Zombies).
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I have this appearing in my library since the last update, it looks like someone else's game...
I'm not even friend with this person.
Does anyone else have this kind of thing in his library ?
http://image.noelshack.com/fichiers/2013/35/1377761583-sans-titre-3.png
Is there a way to remove it ?
EDIT :
It appears that one of my sister's friend connected on his account from my computer something like a year ago.
For some reason just after restarting and updating steam, it decided to display a game from his account.
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