Unable to share SharePoint site with external users

[Igor Karon]

I am unable to share an SPO site with an external user. The site sharing capability is set to ExistingExternalUserSharingOnly (as expected for an O365 group site) but I am not able to change it:

You can’t set the sharing capability to the level you specified, because it is a less restrictive setting than either its parent site collection or your organization.

I am able to invite the user to MS Teams but of course the user cannot see the files:

I checked all of the other settings:

Office 365 Admin Center, Settings > Security & Privacy

Office 365 Groups

SharePoint Admin Center:

What am I missing here?

Thanks!

[#2 · Accepted solution]

The first screenshot you are showing is setting the ExternalUserAndGuestSharing ("anonymous guest links") setting, which is NOT allowed in the tenant, according to the settings shown in your SPO Admin center screenshot. Once you set the Tenant-level setting accordingly, you can change this.

Doesn't explain the actual issue you are having with sharing, but you haven't provided any error messages for that...

[#3]

My bad! When I changed to ExternalUserSharingOnly setting it all worked. I was under the impression that the ExternalUserAndGuestSharing is without anonymous links. It pays to read the documentation carefully! Thanks!