When the "Enable content pack creation" checkbox is unchecked, it prevents users from creating new content packs, but it does not affect the ability to interact with existing content packs.
Here’s the impact of unchecking this option:
Users can continue to edit the contents of existing packs because existing content packs remain available for modification, even though new ones can no longer be created.
Content pack creation will be disabled for new packs, but users who already have existing content packs can still view and modify their content (e.g., adding or removing files) from those packs.
Enable content pack creation
If this option is checked, the Create New | Content Pack option displays on the Libraries tab and users can create content packs from any documents or files in their Salesforce CRM Content private or public libraries.
If this option isn’t checked after users in your organization have already created content packs, those packs aren’t deleted and users can continue to modify metadata such as description, title, and custom fields. However, after content pack creation is no longer enabled, users can’t customize or modify existing packs. Specifically, the Clone & Customize button and the Edit | Edit Content Pack option on the content details page are unavailable.
Not sure of the answer after reading this above.
https://help.salesforce.com/s/articleView?id=sf.content_settings.htm&type=5
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