A recent release of Mac OS X removes libdvdcss.2.dylib from the /usr/lib
directory location.
A solution is to copy it into /usr/local/lib
I first installed MakeMKV. Then I create two symbolic links:
cd ~
mkdir -p ~/lib
ln -s /Applications/MakeMKV.app/Contents/lib/libmmbd.dylib ~/lib/libaacs.dylib
ln -s /Applications/MakeMKV.app/Contents/lib/libmmbd.dylib ~/lib/libbdplus.dylib
It seems that MakeMKV needs to be registered (after the trial period) and started for Handbrake to work.
The above only worked after I restarted the Mac. I guess the OS might cache dynamic libraries.
I also tried, without success, the advice located at "how to get your VLC 2.2 to play Blu-Ray"