Rquirement:
To provide granular & Folder level permissions to individual folders in a document library. I attempt to do this by clicking the Share function on the folder but get a message that I cannot because of the Limited-access user permission lockdown mode feature. What is this feature used for? Are there features that are dependent on this feature? What is the impact of disabling it?
if you want to use the sharepoint server publishing infrastructure feature, you will lose the feature of sharing a folder. you can share files in the folder with other users instead.
if you don’t use the sharepoint server publishing infrastructure feature, you can disable the limited-access user permission lockdown mode feature to restore the feature of sharing a folder.