No sharing links options for folders anymore

Jens Balondo, thanks.

Yes, I've checked affected site collections in the admin center and with PowerShell as well. They're set to ExternalUserSharingOnly. I've just tried switching it to ExistingExternalUserSharingOnly just to see if it makes a difference but it doesn't. I wouldn't expect it to make a difference as this setting should mostly apply to external sharing stuff and we're not even able to share folders within the tenant.

What's even more strange is the following: In the classic admin center, for a given site collection you can choose no to respect the default organization setting for the default link type from within the sharing settings menu. I set it to override the organizational setting and to default to:

And what that does it indeed switch the default link type in the background but the GUI does not completely reflect the change. What it shows me is an empty box but it let's me pick the user name which suggests that it is of type "Direct"

I guess this might honestly be a bug. I will create a ticket with the MS support and keep you guys posted.

Thanks.