I am an Admin of a team of 25 or so; we have a total of 4 Admins on our account. I am responsible for sharing folders and subfolders with colleagues all the time.
We have a Team folder for 2023 that has individual folders for meetings we support. Those meeting folders (when created) are automatically shared with a group of 8 people plus whoever else is added manually to that folder (whether a Team member or a non-Team member).
Today when I was asked to create a subfolder and invite someone not on our Team, it changed the access of that subfolder to Limited for the group of 8 people as well as everyone else who had access to the entire meeting folder. Even when I uninvited that person, the subfolder was still listed as Limited. The only way was for me to delete the folder, add it back, and ask another Admin to invite the person - then all was fine. When I looked at the sharing permissions, it said that the group of 8 still had access to edit the folder, even though they could not access it.
This is happening to me on every web browser I have tried and the Dropbox app on my Mac. However, the iPhone Dropbox app works normally for me to share folders.
This just started happening today - any idea what is going on here? I have copied below the Sharing Settings (that I have not personally touched):

