No sharing links options for folders anymore

Today I noticed that on many of our site collections the sharing links settings menu started looking like this:

This behaviour is exhibited by our classic site collections - at least I couldn't find any modern ones that where this is the case yet.

This is, although the tenant sharing setting is set to "People in your organization" which should make the second link option the default (which it has been in our tenant and still is on some sites):

Now, I know that certain site collection settings can affect the ability for members to be able to share files and folders. For example this setting:

But from my experience this only applies to users without full-access permission (like owners) or site collection admins.

In this case I as a global administrator am unable to select a sharing link type other than the one shown in the first screenshot.

For files this problem does not occur, everything works as fine there.

What's more is that I can still share the folder with an individual user by going through "Grant access" via the details pane of the selected folder:

Any ideas or did anyone notice this behaviour as well?

Thanks!