In SharePoint Online, the 5,000 unique permission scope limit refers to the number of unique permission scopes, not the number of individual users or groups assigned permissions.
So in your case, you broke inheritance on a folder and assigned User1, User2, and User3 specific permissions.
This counts as 1 unique permission scope, not 3.
- A unique permission scope is created each time you break inheritance for an item (file/folder/list item).
- It doesn't matter how many users or groups you assign to that item after breaking inheritance — it's still considered a single unique scope.
Example:
Item | Inheritance Broken? | Custom Permissions | Counts as Unique Scope |
---|---|---|---|
Folder A | Yes | User1, User2, User3 | Yes — 1 unique scope |
File B | No | Inherits from library | No |
Folder C | Yes | Group A | Yes — |
Regarding official Microsoft documentation, refer to Microsoft Docs – Manage large lists and libraries If a folder has two files in it and you share them both with a user, that will cost you three scopes: one for the parent folder and one for each of the files that was shared individually. It doesn't matter that you shared both files with the user and the ACLs of the files are identical. Once you break the inheritance of a file or folder from its parent, you create a unique scope.
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hth
Marcin