Separate libraries
Many teams, especially medium-large teams, often decide the best approach is to break up their components into multiple libraries. This tends to scale much better.

Benefits: By separating components/styles into different documents/libraries, only the required libraries can be enabled for the right subset of users or teams. For example, let’s say you have dedicated teams working on only mobile products. Those working on mobile may never have to consume assets designed for desktop. By splitting these into separate documents, you can publish them to separate libraries. Then, designers will only need to enable the applicable library for them, which saves them from having to sift through components they don’t need to use.
Drawbacks: For those responsible for maintaining and publishing the libraries, there will be more of them to manage.