1) Please, check in this way - install component (without any changes) on fresh joomla, and you will get functionality mentioned in manual.
2) To load images need to go Content->Media Manager. There create a folder stories and load your pictures into it.
3) 31. BookLibrary 2.0.x Shop CAPTCHA
When you do not see a CAPTCHA image in the frontend (and all the needed PHP extensions have been checked to be activated), then the issue is related to an unwriteable session save path. Fix in documentation, page 113. Check this, please.
4) Library member can see/check his/her lent books history сlick on button Show my books.
5) You can change it with help of BookLibrary :: Language Manager
put Our library with suggestions for books for you to enjoy in Search and change it.
6. For use Plugin at first you must install Community Builder component. You will get additional option for Show my books.
For Community Builder Plugin there is no any documentation.