And barely a bookshop at that, more of a tourist attraction. You need tickets to enter, and the main selection of books are classics, mainly public domain iirc. They have more recent/interesting books but only as decoration (I asked to buy a Naomi Klein book, they refused to sell it). Most people are just there to take pictures because the stairs inspired Harry Potter.
Considering the length of the line to get into that place, I'd wager you're correct.
So I think they are aware of the “false friends” words.
With that said, I don’t think it’s an actual library, more like, as you said, an art installation, an exhibition, a space for highlighting books.
I've been to lots of bookstores with sections or displays for famously banned books. I'm pretty sure my local Indigo (basically a Canadian Barnes & Noble) has one. If that's all this is then it doesn't sound especially newsworthy outside of the celebrity involvement and maybe the renown of this particular shop.
OTOH the article describes it as a "permanent" installation, which does sound a little different from what I'm picturing.