I asked this question on the OneDrive dev forum a few weeks ago (link) but have not received any responses - apart from another user saying they are running into the same issue:
In OneDrive, I can create a sharing link for a folder and set the link so "Anyone with the link can edit". I assume this means that even users outside my organization can edit the folders and files within the shared folder.
If I test this with an external account, I'm able to edit the files and folders. However, I'm periodically prompted with a Microsoft login pop-up window. I can ignore/close the login prompt and continue editing the files. However, the login prompt keeps popping up periodically, including every time I refresh the screen. If I try to log in with the external user account, it gives me an error saying I'm not part of the tenant and I need to be added as an external user to the tenant. But then I can still close that and continue editing the files.
If I send the invite link for a folder via a graph API call, I'm forced to set the "requireSignIn" property to True in the body of the request. If I set it to False, I get an error:
RequireSignIn cannot be false for folders
I do not run into the same issue when sharing files. Whether I create the link in OneDrive UI or via the API, the external user does not get hit repeatedly with login prompts.
Am I doing something wrong or is this a bug? If sharing a folder is not allowed outside an organization, why does it allow me to create a sharing link where "Anyone with the link can edit"? And why is the external user still able to edit the files despite the repeated login prompts?