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Permissions to Subfolder not granting acces to parent

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Frequent Contributor
SharePoint Online.  Have a site that all users have read access to which has a single library with Project Folders (project 1, project 2, project 3) then subfolders 1,2, 3, 4 under each project.  I have never added all the users to the library settings as the permissions pull from the folders (and always have).
 
Prior to today, I have been able to grant access to Subfolder 1 under Project 1 folder to a user and that user would SEE the Project 1 folder then their Subfolder 1 when they logged into SharePoint but none of the other Subfolders 2, 3, 4.  By granting the user access to the subfolder, SharePoint knew that they would need access to the parent folder and I didn't have to manually grant access to both parent and child folders.
 
For some reason this has stopped working.  The only way I can get the user to see their Subfolders is to add them to the Parent Folder, which then gives them access to ALL Subfolders, then I have to manually remove them from each subfolder.
 
I don't know if there's been an update lately that broke this but is there an easier way to get this working again?  Anytime I add to the parent it overrides the subfolders which I don't want to do. 
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