Hi @Mytoast Admin ,
According to your description, the folder was shared directly to those external users. When you shared the folder, did you grant the Can Edit permission at the same time? If so, then external users can directly download the files in the folder. If not, it is recommended that you share the folder again and grant the external users the Can Edit permission.
I made a test. When the organization-level and site-level external sharing settings are set to New and existing guests, the above method allows external users to download files.
For your reference:
Good day!
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