A group of Microsoft Products and technologies used for sharing and managing content, knowledge, and applications.
1.If you want to enable external sharing in some site collections, you should enable Anyone link in the sharing policy of SharePoint admin center (tenant level). In the case of conflicts, the organization-wide configuration takes precedence over the site collection configuration. So there is no option to all the sites to be shared with internal users only and an admin can set if the specific site can be shared with guests.
2.Yes, if the guest user exists in the Azure AD, limit sharing by domain will be invalid.
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