For some reason, the ability to share folders using anonymous links has been disabled on our site collection. I've tried the SPO mgmt shell fix outlined here to no avail, and verified that external sharing is turned on (as outlined here). The option to share a file with "Anyone with the link" in any given document library is available, but when sharing folders, the option is grayed out. Help? What am I missing? Many thanks in advance.
That is interesting. Going to assume that you aren't logged in, or not logged in for that matter using a guest link to access the location then trying to Share the folder after that? You shouldnt' be able to share a folder as an external user, so wondering if this may be the case, make sure you are logged in as a tenant user, and manually go to a folder location and try. If not the case let me know and I'll pluck around to see if there is anything else.
Also, you shouldn't really have any site collection features turned on either, if you do, which ones do you have on? I've seen the Limited-access user permission lockdown mode cause some odd issues before as well.