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That worked, thanks. First explicitly installing updating/installing wlroots and wlroots0.17 and then running pacman -Syu did the trick!

Ah, my bad. Of course it will conflict if the new wlroots doesn't get updated alongside.
So please try: pacman -S --asdeps wlroots wlroots0.17 (--asdeps for it being installed as a dependency and would be removed if unneeded via an -Rs)

Trying to explicitly installing wlroots0.17 gives

[...]
error: failed to commit transaction (conflicting files)
wlroots0.17: /usr/lib/libwlroots.so.12 exists in filesystem (owned by wlroots)
Errors occurred, no packages were upgraded.

There also cannot be an “after -Syu” because it fails.

The outputs as requested:

$ pacman -Qi labwc
Name            : labwc
Version         : 0.7.3-2
Description     : stacking wayland compositor with look and feel from openbox
Architecture    : x86_64
URL             : https://github.com/labwc/labwc
Licenses        : GPL-2.0-only
Groups          : None
Provides        : None
Depends On      : libpng  librsvg  pango  seatd  libwlroots.so=12-64  wayland  xorg-xwayland
Optional Deps   : bemenu: default launcher via Alt+F3
Required By     : None
Optional For    : None
Conflicts With  : None
Replaces        : None
Installed Size  : 441.28 KiB
Packager        : Unknown Packager
Build Date      : Sat Jul 13 22:32:50 2024
Install Date    : Sat Jul 13 22:33:03 2024
Install Reason  : Explicitly installed
Install Script  : No
Validated By    : None

$ pacman -Qi wlroots
Name            : wlroots
Version         : 0.17.4-1
Description     : Modular Wayland compositor library
Architecture    : x86_64
URL             : https://gitlab.freedesktop.org/wlroots/wlroots
Licenses        : MIT
Groups          : None
Provides        : libwlroots.so=12-64
Depends On      : libdisplay-info.so=2-64  libglvnd  libinput  libpixman-1.so=0-64  libseat.so=1-64  libudev.so=1-64
                  libvulkan.so=1-64  libwayland-client.so=0-64  libwayland-server.so=0-64  libxcb  libxkbcommon.so=0-64
                  opengl-driver  xcb-util-errors  xcb-util-renderutil  xcb-util-wm
Optional Deps   : xorg-xwayland: Xwayland support [installed]
Required By     : labwc
Optional For    : None
Conflicts With  : None
Replaces        : None
Installed Size  : 1390.85 KiB
Packager        : Robin Candau <antiz@archlinux.org>
Build Date      : Thu Jun 27 23:15:51 2024
Install Date    : Sat Jun 29 12:06:49 2024
Install Reason  : Installed as a dependency for another package
Install Script  : No
Validated By    : Signature

$ pacman -Qi wlroots0.17
error: package 'wlroots0.17' was not found

$ pacman -Si wlroots0.17
Repository      : extra
Name            : wlroots0.17
Version         : 0.17.4-1
Description     : Modular Wayland compositor library
Architecture    : x86_64
URL             : https://gitlab.freedesktop.org/wlroots/wlroots
Licenses        : MIT
Groups          : None
Provides        : libwlroots.so=12-64
Depends On      : libdisplay-info.so=2-64  libglvnd  libinput  libpixman-1.so=0-64  libseat.so=1-64  libudev.so=1-64
                  libvulkan.so=1-64  libwayland-client.so=0-64  libwayland-server.so=0-64  libxcb  libxkbcommon.so=0-64
                  opengl-driver  xcb-util-errors  xcb-util-renderutil  xcb-util-wm
Optional Deps   : xorg-xwayland: Xwayland support
Conflicts With  : None
Replaces        : None
Download Size   : 424.47 KiB
Installed Size  : 1394.87 KiB
Packager        : Frederik Schwan <freswa@archlinux.org>
Build Date      : Sat Jul 13 14:17:14 2024
Validated By    : SHA-256 Sum  Signature

What happens if you explicitly install wlroots0.17 and after that issue -Syu?

Could you paste the complete output of pacman -Qi on labwc, wlroots0.17 and wlroots Dirk?

Edit: or -Si as you cannot install everything? It is odd what it wants to do.
Edit2: Ahh.. I think I know what happened. You rebuild the package with the old wlroots when it still was 0.17 and after that made a full system update. Which breaks things. Didn't notice that, as I use a custom repo. But that means I cannot use the .so deps... What a bummer

$ pacman -Qi labwc | grep Version
Version         : 0.7.3-2

# pacman -Syu
[...]
error: failed to prepare transaction (could not satisfy dependencies)
:: installing wlroots (0.18.0-1) breaks dependency 'libwlroots.so=12-64' required by labwc

What now?

Wow.. didn't expect them to update that package so fast :D
Thanks for the notice bgiovanni. Fix incoming

@TrialnError: wlroots 0.18 has been released and the 'wlroots' package has now been updated to that version, a new package named 'wlroots0.17' has been introduced for that series. I don't believe labwc has support for 0.18, thus the 'wlroots' dependency should be changed to 'wlroots0.17'. Thank you.

Hello knm100. Normally I would suggest to try the labwc-git to see if it's already fixed upstream. But I do remember seeing an issue regarding a vmware setup.
https://github.com/labwc/labwc/issues/1361
Is it possible for you to add your information to the issue? May help to resolve this as the issue is currently rather stale.

when i run a x11 app on xwayland, the labwc will crash. I run labwc in vmware workstation 17.5.