More like the former, though the digraph lh represents a consonant that doesn't exist in English. It isn't exactly an l followed by a glide, but a single sound. Note julho ('July', the month) and Júlio ('Julius', male given name) sound different.
Spanish ll is historically the same consonant as Portuguese lh, but these days the phenomenon called yeísmo, whereby it's pronounced the same as y (before a vowel), has become nearly universal, making, for example, callado ('silent') and cayado ('staff, crook') homophones. I'm not sure, but I think something similar happened centuries ago to French ll and Occitan lh (guess where the Portuguese digraph comes from?), which became simply a glide or ceased to be pronounced altogether.
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The red lake has been forgotten. A dust devil stuns you long enough to shroud forever those last shards of wisdom. The breeze rocking this forlorn wasteland whispers in your ears, “Não resta mais que uma sombra”.