Allowing users to invite

Today we, in our company, create guest users centrally in IT on request. But this causes an unnecessary delay so I want to allow site owners (or Teams owners) to invite directly, e.g. by using the Share function in SharePoint Online. 

 

I have set SharePoint to "Allow users to invite and share with authenticated external users" and in Azure AD, "Members can invite" is set to Yes. But still I am not allowed to invite as a regular user (owner) on SharePoint.

 

Is this a bug, or did I misunderstand what the above setting are meant to accomplish?