No permission to share a MS lists

I know this is several years old but I ran into a similar issue and just found the answer to this:
You ned to turn off the "Limited-access user permission lockdown mode" feature
As Per:
https://learn.microsoft.com/en-us/answers/questions/472581/impact-of-deactivating-the-limited-access-user-per
"if you want to use the sharepoint server publishing infrastructure feature, you will lose the feature of sharing a folder. you can share files in the folder with other users instead. "

To turn of the feature:

• Login to your SharePoint Online site as a Site Collection Administrator
• Click on Settings >> Site Information >> View all Site Settings.
• Under Site Collection Administration, Click on “Site collection features”
• Deactivate the “Limited-access user permission lockdown mode” feature.