I think small l libertarians see liberals as supporters of both empire building and social welfare, so they'd align themselves with the lesser of two evils.
And we tend to see conservatives of supporters of both empire building and attacks on civil liberties. In no way clearly the lesser of two evils.
I would greatly disagree. Non-establishment repubs are not into empire building or attacking civil liberties and are clearly closer to libertarianism than the modern democrat. But both parties, overall, are mostly made up of establishment FDR progressives. At that point the D or the R is irrelevant.