I too cannot get LibMMBD working.
MakeMKV: 1.16.3 and 1.16.4 (tried both)
VLC: 3.0.16
OS: Windows 10 Pro, v 2004, OS build: 19041.1083
BD: BU40N flashed to 1.03
Manual rips work fine.
If I try to play a blu-ray in VLC without LibMMBD, I get the expected error:
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Blu-ray error: This Blu-ray Disc needs a library for AACS decoding, and your system does not have it.
Then following these instructions I enable LibMMBD:
http://www.makemkv.com/libmmbd/
I have tried system wide and VLC specific, in both cases I get the following error from VLC:
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Blu-ray error: Blu-ray Disc is corrupted.
Since the error message changed in VLC once I enabled LibMMBD, I can see it has an effect on VLC, just not the desired effect.
VLC log is the same with and without LibMMBD:
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-- logger module started --
main: Running vlc with the default interface. Use 'cvlc' to use vlc without interface.
main: playlist is empty
libbluray: First play: 1, Top menu: 1
HDMV Titles: 17, BD-J Titles: 3, Other: 0
-- logger module stopped --
TIA for help