Sharing folders with external users (not guest users)

[Jeannemac]

When sharing a folder in SharePoint online with an external user (not a guest user), we are seeing that the subfolders are not also shared. External sharing is allowed at the tenant level. The subfolders are inheriting permissions from the parent which is the top folder. The external users can see the folder, but not the subfolders. Is this the expected result of sharing with external users?

TYIA

[#2]

Sometimes, external sharing issues can occur due to the “Limited-access user permission lockdown mode” in the root site collection. Try deactivating this mode. Doing so allows for the sharing of folders with external users

[#3]

This is not activated on this site collection.