"Your recipients couldn't be given access to the file" - Sharing via Outlook from OneDrive

Thanks Vasil. As I mentioned I already logged a call with Support and was told my problem was fixed when they got me to change my Sharing Permissions from 'Most Permissive' to the next step down. My post here was because I don't see the connection between the Sharing Permissions and this email (though it does indeed stop the error email) and wanted some advice.

When I retain the Most Permissive settings in SP and OD Admin I only get the error email when sending from the Outlook client and synced libraries. Not from OWA or from the client when attaching from cloud-only locations. 

Looks like I am opening another support call...