I want to run this cmd line script
$ script.sh lib/* ../test_git_thing
I want it to process all the files in the /lib folder.
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As correctly noted, lib/* on the command line is being expanded into all files in lib. To prevent expansion, you have 2 options. (1) quote your input:
$ script.sh 'lib/*' ../test_git_thing
Or (2), turn file globbing off. However, the option set -f will disable pathname expansion within the shell, but it will disable all pathname expansion (setting it within the script doesn't help as expansion is done by the shell before passing arguments to your script). In your case, it is probably better to quote the input or pass the first arguments as a directory name, and add the expansion in the script:
DIR=$1
for f in "$DIR"/*