Arduino would normally detect the libraries automatically based on the library directories. If this is not happening, please try narrowing the problem down to a specific library:
Ensure that your .ino file includes the correct header file.
Ensure that the library is located in one of the library directories (i.e. global per-user library folder, or a custom folder specified via VisualGDB Project Properties -> Arduino Library Directories).
If this doesn’t help, please try reproducing the problem with the same library on a freshly created project and share the exact steps from creating the project to observing library issues.
The “‘arduino:libraries’ is not found or not supported” error looks like TFS is trying to resolve a virtual path used by VisualGDB for the “Libraries” node in Solution Explorer. It should normally not cause any side effects and can be safely ignored.
This is by design. The Arduino build system prioritizes simplicity over flexibility and hence automatically finds libraries by scanning the main header file for missing includes and then resolving them to the libraries.