The users are external, not within our tenant. They can view the folder but cannot edit the files in the folder. There are no unique permissions, except the "can edit" sharing link provided to the external users.
Unable to Share Files with External User with "Can Edit" Permissions

Kim Erwin
0
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We are trying to share a SharePoint folder with a client. We do this all the time. For some reason, this client is receiving the error in the screenshot provided. Why is it looking for the user in our tenant when we have shared it with the external user?
The client is able to open the folder, but gets this error when attempting to open any files within the folder. We shared the folder with five people (with can edit permissions) and they are all receiving this error. We have never had to add clients as external users in our tenant before.
Thanks in advance
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@Kim Erwin,
So, in your case, all the five users are signed in with the accounts in the tenant? Did you grant any unique permissions to files in that folder?
@AllenXu-MSFT The users are external, not within our tenant. They can view the folder but cannot edit the files in the folder. There are no unique permissions, except the "can edit" sharing link provided to the external users.