Recently we've started using SharePoint Online (SPO) to organize and share documents. Many of our users are looking to share a Subfolder with an external partner so that they can collaborate and upload files to us.
Setting the permission is fine but when they get the sharing link from Microsoft it sends them to the site URL not the subfolder that we shared and gives them an Access Denied message.
From what I understand, when you break permission and grant access, SPO is supposed to add Limited Access permissions to allow the subfolder traversal. If it did work, the user would use the autogenerated email invitation >> navigate to the home page >>go through the structure only where they had access (seeing nothing else) >> until they reached the folder they have access to.
However this does not work. After breaking inheritance and granting access the users, they have access through a direct URL and can then navigate back up the breadcrumbs; but cannot by going to the site URL; which is what comes in the MS autogenerated email.
Confirmed that the Limited-access user permission lockdown mode is also disabled.
Am I missing a step? This is frustrating for our partners who don't all use SharePoint because they get an email saying to access the site but then have to manually bookmark the direct URL seperately.