
Limited Access permission does not mean that the users are "limited" or blocked. In fact, it enables a user or group to browse to a site page or library to access a specific content item when they do not have permissions to open or edit any other items in the site or library. This level is automatically assigned by SharePoint when you provide access to one specific item.
Think about a situation with a common list. User A does not have permission on that list. However we need A to check a specific item inside the list. So we share that item to user A. In this way, user A now can view the item and still have no access to other items in that list. To make it happen, SharePoint automatically grant user A a limited access permission level. In this way, user A can navigate to the the list and find the item he has permission. Otherwise he cannot even view this list.
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