I hope your subfolder is named “library” and not “libary”.
Maybe the “-1.3.10” part could confuse Processing and should be removed:
“aws-iot-device-sdk-java-1.3.10” → “aws-iot-device-sdk-java”
This below should be your tree folder structure:
+---"Sketchbook's path"/libraries
| \---aws-iot-device-sdk-java
| \---library
| aws-iot-device-sdk-java.jar
| "other dependencies".jar