As far as I know, the most common German pronunciation for Libyen (the country of Libya) is /'ly:bi@en/, i.e., as if spelled Lybien. Similarly, the adjective libysch is commonly pronounced /'ly:bIS/ (like lübisch meaning “of Lübeck”).
On tagesschau, the prestigious German news show, it seems to be house style to pronounce it the way it’s spelled
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