Code via email doesn't work when sharing folders with One Drive or Sharepoint

Question

Hi everyone,

On my own tenant, I have been sharing folders with external users for a while now, and they actually get the mail with the 6-digit code to access it without needing to connect...

On one of my customers' tenants, the system insists in asking the external user to connect. I fail to understand why, as the settings I checked are properly configured:

• folder is shared to specific people, view only
• code via email is set to "yes" in Entra

I even tried on another tenant and it's behaving the same. I found out that the emails I'm inputting in the sharing window are automatically added as guest accounts, which would explain why it's asking for login. I never asked for this. I simply want it to work the way it always does: I share a folder to one or more email accounts, and all they have to do is click on the link, type their email, wait for the code and paste it in the field!

Has anyone experienced this and found out what is causing the issue?

Thanks a lot in advance!