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Dear Mike Lehman,
Good day!!
Apologies for the inconvenience caused and please don’t worry, let’s work together on your concern and move towards a resolution path.
I understand your concern and I would like to confirm whether Anyone option is grayed out when you are trying to share the folder in the List or Library or even when you are sharing the files or items in the List.
If the Anyone option is grayed out when you are trying to share the folder in the Library or List in the SharePoint Online, I believe the problem is caused due to the Limited-access user permission lockdown modeis activated in the SharePoint Online site collection features:
Open the SharePoint Online site> Settings> Site Information> View all site settinsgs> Site Collection Feature> Scroll down and see whether Limited-access user permission lockdown mode feature is activated> If yes, please click deactivate the feature and check the outcome.
If the Anyone option is grayed when you try to share either folder or file in the List or Library, then I would like to suggest you to check whether Allow only users in specific security groups to share externallyis enabled in SharePoint Online Admin Center:
Open the SharePoint Online Admin center> Policies> Sharing> Check whether the option “Allow only users in specific security groups to share externally” is enabled> If yes, disable the option and save the sharing settings in the SharePoint Online admin center to check the outcome.
If still the same issue, then I believe the problem should be further investigated by related development team via collecting HAR logs because there is no any related service incident reported at the Microsoft Service Health dashboard.
I do feel regret for not resolving the problem and redirecting you to the related development team but the fix to your concern can be find out through the HAR logs and suggest you raise a support ticket from the Office 365 admin center, where the related team will investigate the problem further by collecting the HAR logs.
Reference: Get support - Microsoft 365 admin | Microsoft Learn
Note: To create a support ticket, you need to have admin privileges and if you aren’t admin of your Office 365 organization, please contact the admin of creating a new ticket.
Appreciate your patience and understanding. Have a great day!!
Best Regards,
Sophia